ADP vs. FER: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and FER, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ADP’s market capitalization of 125.51 billion USD is substantially larger than FER’s 38.49 billion USD, indicating a significant difference in their market valuations.
With betas of 0.80 for ADP and 0.94 for FER, both stocks show similar sensitivity to overall market movements.
FER is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ADP, on the other hand, is a domestic entity.
| Symbol | ADP | FER |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Ferrovial SE |
| Country | US | NL |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Industrial - Infrastructure Operations |
| CEO | Maria Black | Ignacio Madridejos Fernandez |
| Price | 309.2 USD | 53.02 USD |
| Market Cap | 125.51 billion USD | 38.49 billion USD |
| Beta | 0.80 | 0.94 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 17, 1980 | August 13, 2012 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ADP and FER by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ADP
76.78%
Staffing & Employment Services Industry
- Max
- 76.78%
- Q3
- 46.63%
- Median
- 19.55%
- Q1
- 6.99%
- Min
- -1.64%
In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Equity of 76.78% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
FER
6.13%
Industrial - Infrastructure Operations Industry
- Max
- 9.30%
- Q3
- 7.72%
- Median
- 6.13%
- Q1
- 4.67%
- Min
- 3.21%
FER’s Return on Equity of 6.13% is on par with the norm for the Industrial - Infrastructure Operations industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ADP
23.22%
Staffing & Employment Services Industry
- Max
- 23.22%
- Q3
- 18.16%
- Median
- 9.93%
- Q1
- 4.57%
- Min
- -1.94%
In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Invested Capital of 23.22% signifies a highly effective use of its capital to generate profits when compared to its peers.
FER
1.31%
Industrial - Infrastructure Operations Industry
- Max
- 3.85%
- Q3
- 3.43%
- Median
- 3.01%
- Q1
- 2.16%
- Min
- 1.31%
FER’s Return on Invested Capital of 1.31% is in the lower quartile for the Industrial - Infrastructure Operations industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
ADP
19.79%
Staffing & Employment Services Industry
- Max
- 30.46%
- Q3
- 17.07%
- Median
- 3.53%
- Q1
- 0.98%
- Min
- -4.15%
A Net Profit Margin of 19.79% places ADP in the upper quartile for the Staffing & Employment Services industry, signifying strong profitability and more effective cost management than most of its peers.
FER
4.18%
Industrial - Infrastructure Operations Industry
- Max
- 4.18%
- Q3
- 4.03%
- Median
- 3.88%
- Q1
- 3.44%
- Min
- 3.00%
A Net Profit Margin of 4.18% places FER in the upper quartile for the Industrial - Infrastructure Operations industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ADP
17.38%
Staffing & Employment Services Industry
- Max
- 19.92%
- Q3
- 12.35%
- Median
- 4.95%
- Q1
- 2.59%
- Min
- -2.06%
An Operating Profit Margin of 17.38% places ADP in the upper quartile for the Staffing & Employment Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
FER
7.26%
Industrial - Infrastructure Operations Industry
- Max
- 15.40%
- Q3
- 11.37%
- Median
- 7.35%
- Q1
- 7.30%
- Min
- 7.26%
FER’s Operating Profit Margin of 7.26% is in the lower quartile for the Industrial - Infrastructure Operations industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | ADP | FER |
|---|---|---|
| Return on Equity (TTM) | 76.78% | 6.13% |
| Return on Assets (TTM) | 7.08% | 1.03% |
| Return on Invested Capital (TTM) | 23.22% | 1.31% |
| Net Profit Margin (TTM) | 19.79% | 4.18% |
| Operating Profit Margin (TTM) | 17.38% | 7.26% |
| Gross Profit Margin (TTM) | 47.09% | 96.19% |
Financial Strength
Current Ratio
ADP
1.02
Staffing & Employment Services Industry
- Max
- 2.06
- Q3
- 2.01
- Median
- 1.65
- Q1
- 1.15
- Min
- 1.02
ADP’s Current Ratio of 1.02 falls into the lower quartile for the Staffing & Employment Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
FER
0.93
Industrial - Infrastructure Operations Industry
- Max
- 2.19
- Q3
- 2.08
- Median
- 1.98
- Q1
- 1.46
- Min
- 0.93
FER’s Current Ratio of 0.93 falls into the lower quartile for the Industrial - Infrastructure Operations industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ADP
0.73
Staffing & Employment Services Industry
- Max
- 0.73
- Q3
- 0.70
- Median
- 0.22
- Q1
- 0.11
- Min
- 0.02
ADP’s leverage is in the upper quartile of the Staffing & Employment Services industry, with a Debt-to-Equity Ratio of 0.73. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
FER
3.17
Industrial - Infrastructure Operations Industry
- Max
- 3.56
- Q3
- 3.36
- Median
- 3.17
- Q1
- 1.93
- Min
- 0.69
FER’s Debt-to-Equity Ratio of 3.17 is typical for the Industrial - Infrastructure Operations industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ADP
7.90
Staffing & Employment Services Industry
- Max
- 7.90
- Q3
- 7.90
- Median
- 2.91
- Q1
- -0.32
- Min
- -1.17
ADP’s Interest Coverage Ratio of 7.90 is positioned comfortably within the norm for the Staffing & Employment Services industry, indicating a standard and healthy capacity to cover its interest payments.
FER
--
Industrial - Infrastructure Operations Industry
- Max
- 2.10
- Q3
- 2.06
- Median
- 2.02
- Q1
- 1.98
- Min
- 1.94
Interest Coverage Ratio data for FER is currently unavailable.
Financial Strength at a Glance
| Symbol | ADP | FER |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 0.93 |
| Quick Ratio (TTM) | 1.02 | 0.86 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 3.17 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.45 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 10.24 |
| Interest Coverage Ratio (TTM) | 7.90 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADP and FER. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ADP
1.95%
Staffing & Employment Services Industry
- Max
- 5.58%
- Q3
- 3.50%
- Median
- 2.08%
- Q1
- 0.83%
- Min
- 0.00%
ADP’s Dividend Yield of 1.95% is consistent with its peers in the Staffing & Employment Services industry, providing a dividend return that is standard for its sector.
FER
1.74%
Industrial - Infrastructure Operations Industry
- Max
- 1.72%
- Q3
- 0.97%
- Median
- 0.23%
- Q1
- 0.11%
- Min
- 0.00%
FER’s Dividend Yield of 1.74% is exceptionally high, placing it well above the typical range for the Industrial - Infrastructure Operations industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio
ADP
58.73%
Staffing & Employment Services Industry
- Max
- 161.25%
- Q3
- 109.23%
- Median
- 58.73%
- Q1
- 15.69%
- Min
- 0.00%
ADP’s Dividend Payout Ratio of 58.73% is within the typical range for the Staffing & Employment Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
FER
0.00%
Industrial - Infrastructure Operations Industry
- Max
- 12.55%
- Q3
- 6.27%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
FER has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | ADP | FER |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 1.74% |
| Dividend Payout Ratio (TTM) | 58.73% | 0.00% |
Valuation
Price-to-Earnings Ratio
ADP
31.47
Staffing & Employment Services Industry
- Max
- 35.74
- Q3
- 30.98
- Median
- 20.51
- Q1
- 15.65
- Min
- 7.85
A P/E Ratio of 31.47 places ADP in the upper quartile for the Staffing & Employment Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
FER
121.18
Industrial - Infrastructure Operations Industry
- Max
- 122.83
- Q3
- 119.91
- Median
- 116.99
- Q1
- 85.94
- Min
- 54.88
A P/E Ratio of 121.18 places FER in the upper quartile for the Industrial - Infrastructure Operations industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
ADP
3.56
Staffing & Employment Services Industry
- Max
- 3.23
- Q3
- 1.89
- Median
- 1.18
- Q1
- 1.00
- Min
- 0.39
ADP’s Forward PEG Ratio of 3.56 is exceptionally high for the Staffing & Employment Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
FER
4.91
Industrial - Infrastructure Operations Industry
- Max
- 8.44
- Q3
- 6.71
- Median
- 4.98
- Q1
- 3.89
- Min
- 2.80
FER’s Forward PEG Ratio of 4.91 is within the middle range of its peers in the Industrial - Infrastructure Operations industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ADP
6.21
Staffing & Employment Services Industry
- Max
- 3.70
- Q3
- 2.09
- Median
- 0.86
- Q1
- 0.59
- Min
- 0.09
With a P/S Ratio of 6.21, ADP trades at a valuation that eclipses even the highest in the Staffing & Employment Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
FER
4.95
Industrial - Infrastructure Operations Industry
- Max
- 5.02
- Q3
- 4.78
- Median
- 4.54
- Q1
- 3.09
- Min
- 1.65
FER’s P/S Ratio of 4.95 is in the upper echelon for the Industrial - Infrastructure Operations industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ADP
21.49
Staffing & Employment Services Industry
- Max
- 21.09
- Q3
- 12.56
- Median
- 3.17
- Q1
- 1.96
- Min
- 0.33
The P/B Ratio is often not a primary valuation metric for the Staffing & Employment Services industry.
FER
8.83
Industrial - Infrastructure Operations Industry
- Max
- 13.53
- Q3
- 11.24
- Median
- 8.95
- Q1
- 5.35
- Min
- 1.75
FER’s P/B Ratio of 8.83 is within the conventional range for the Industrial - Infrastructure Operations industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ADP | FER |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 31.47 | 121.18 |
| Forward PEG Ratio (TTM) | 3.56 | 4.91 |
| Price-to-Sales Ratio (P/S, TTM) | 6.21 | 4.95 |
| Price-to-Book Ratio (P/B, TTM) | 21.49 | 8.83 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.77 | 74.81 |
| EV-to-EBITDA (TTM) | 20.57 | 50.42 |
| EV-to-Sales (TTM) | 6.29 | 6.21 |