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ADP vs. EMR: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ADP and EMR, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

ADP dominates in value with a market cap of 130.96 billion USD, eclipsing EMR’s 65.33 billion USD by roughly 2.00×.

EMR carries a higher beta at 1.25, indicating it’s more sensitive to market moves, while ADP remains steadier at 0.78.

SymbolADPEMR
Company NameAutomatic Data Processing, Inc.Emerson Electric Co.
CountryUSUS
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesIndustrial - Machinery
CEOMs. Maria BlackMr. Surendralal Lanca Karsanbhai
Price322.63 USD116.15 USD
Market Cap130.96 billion USD65.33 billion USD
Beta0.781.25
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980June 1, 1972
ADRNoNo

Performance Comparison

This chart compares the performance of ADP and EMR over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

For a detailed comparison of valuation metrics between ADP and EMR, please refer to the table below.

SymbolADPEMR
Price-to-Earnings Ratio (P/E, TTM)32.8327.30
Forward PEG Ratio (TTM)3.723.38
Price-to-Sales Ratio (P/S, TTM)6.483.71
Price-to-Book Ratio (P/B, TTM)22.423.40
Price-to-Free Cash Flow Ratio (P/FCF, TTM)28.9723.65
EV-to-EBITDA (TTM)21.4517.25
EV-to-Sales (TTM)6.564.45
EV-to-Free Cash Flow (TTM)29.3228.35

Dividend Comparison

Both ADP and EMR offer similar dividend yields (1.82% vs. 1.81%), indicating comparable approaches to balancing income and growth.

SymbolADPEMR
Dividend Yield (TTM)1.82%1.81%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ADP and EMR, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • EMR’s current ratio of 0.80 indicates its assets may not cover near-term debts, whereas ADP at 1.02 maintains healthy liquidity.
  • EMR posts a quick ratio of 0.59, indicating limited coverage of short-term debts from its most liquid assets—while ADP at 1.02 enjoys stronger liquidity resilience.
SymbolADPEMR
Current Ratio (TTM)1.020.80
Quick Ratio (TTM)1.020.59
Debt-to-Equity Ratio (TTM)0.730.77
Debt-to-Assets Ratio (TTM)0.080.35
Interest Coverage Ratio (TTM)7.9015.21