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

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Here’s a clear look at ADP and FLR, 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 FLR’s 8.69 billion USD, indicating a significant difference in their market valuations.

FLR carries a higher beta at 1.30, indicating it’s more sensitive to market moves, while ADP (beta: 0.80) exhibits greater stability.

SymbolADPFLR
Company NameAutomatic Data Processing, Inc.Fluor Corporation
CountryUSUS
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesEngineering & Construction
CEOMaria BlackJames R. Breuer
Price309.2 USD52.76 USD
Market Cap125.51 billion USD8.69 billion USD
Beta0.801.30
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980December 1, 2000
ADRNoNo

Historical Performance

This chart compares the performance of ADP and FLR 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.

ADP vs. FLR: Growth of a $10,000 investment over the past one year.

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.

FLR

61.85%

Engineering & Construction Industry

Max
39.77%
Q3
28.08%
Median
13.64%
Q1
7.13%
Min
-14.48%

FLR’s Return on Equity of 61.85% is exceptionally high, placing it well beyond the typical range for the Engineering & Construction industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ADP vs. FLR: A comparison of their ROE against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

-0.10%

Engineering & Construction Industry

Max
22.01%
Q3
12.65%
Median
8.09%
Q1
4.79%
Min
-2.53%

FLR has a negative Return on Invested Capital of -0.10%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

ADP vs. FLR: A comparison of their ROIC against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

11.14%

Engineering & Construction Industry

Max
11.23%
Q3
6.47%
Median
3.96%
Q1
2.79%
Min
-2.45%

A Net Profit Margin of 11.14% places FLR in the upper quartile for the Engineering & Construction industry, signifying strong profitability and more effective cost management than most of its peers.

ADP vs. FLR: A comparison of their Net Profit Margin against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

3.03%

Engineering & Construction Industry

Max
13.74%
Q3
8.50%
Median
6.20%
Q1
4.58%
Min
0.34%

FLR’s Operating Profit Margin of 3.03% is in the lower quartile for the Engineering & Construction industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

ADP vs. FLR: A comparison of their Operating Margin against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

Profitability at a Glance

SymbolADPFLR
Return on Equity (TTM)76.78%61.85%
Return on Assets (TTM)7.08%21.90%
Return on Invested Capital (TTM)23.22%-0.10%
Net Profit Margin (TTM)19.79%11.14%
Operating Profit Margin (TTM)17.38%3.03%
Gross Profit Margin (TTM)47.09%3.71%

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.

FLR

1.74

Engineering & Construction Industry

Max
2.02
Q3
1.66
Median
1.38
Q1
1.24
Min
0.94

FLR’s Current Ratio of 1.74 is in the upper quartile for the Engineering & Construction industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ADP vs. FLR: A comparison of their Current Ratio against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

0.30

Engineering & Construction Industry

Max
1.76
Q3
0.91
Median
0.67
Q1
0.28
Min
0.01

FLR’s Debt-to-Equity Ratio of 0.30 is typical for the Engineering & Construction industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ADP vs. FLR: A comparison of their D/E Ratio against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

11.16

Engineering & Construction Industry

Max
20.20
Q3
11.91
Median
6.46
Q1
3.18
Min
-2.69

FLR’s Interest Coverage Ratio of 11.16 is positioned comfortably within the norm for the Engineering & Construction industry, indicating a standard and healthy capacity to cover its interest payments.

ADP vs. FLR: A comparison of their Interest Coverage against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

Financial Strength at a Glance

SymbolADPFLR
Current Ratio (TTM)1.021.74
Quick Ratio (TTM)1.021.74
Debt-to-Equity Ratio (TTM)0.730.30
Debt-to-Asset Ratio (TTM)0.080.13
Net Debt-to-EBITDA Ratio (TTM)0.26-2.22
Interest Coverage Ratio (TTM)7.9011.16

Growth

The following charts compare key year-over-year (YoY) growth metrics for ADP and FLR. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ADP vs. FLR: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ADP vs. FLR: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ADP vs. FLR: A comparison of their annual year-over-year 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.

FLR

0.00%

Engineering & Construction Industry

Max
1.31%
Q3
0.40%
Median
0.00%
Q1
0.00%
Min
0.00%

FLR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ADP vs. FLR: A comparison of their Dividend Yield against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

0.00%

Engineering & Construction Industry

Max
32.30%
Q3
7.09%
Median
0.00%
Q1
0.00%
Min
0.00%

FLR 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.

ADP vs. FLR: A comparison of their Payout Ratio against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

Dividend at a Glance

SymbolADPFLR
Dividend Yield (TTM)1.95%0.00%
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.

FLR

4.84

Engineering & Construction Industry

Max
95.41
Q3
56.70
Median
32.28
Q1
22.94
Min
4.72

In the lower quartile for the Engineering & Construction industry, FLR’s P/E Ratio of 4.84 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ADP vs. FLR: A comparison of their P/E Ratio against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

0.41

Engineering & Construction Industry

Max
4.99
Q3
3.64
Median
2.51
Q1
1.64
Min
0.03

The Forward PEG Ratio is often not a primary valuation metric in the Engineering & Construction industry.

ADP vs. FLR: A comparison of their Forward PEG Ratio against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

0.52

Engineering & Construction Industry

Max
3.34
Q3
2.05
Median
1.50
Q1
0.83
Min
0.44

In the lower quartile for the Engineering & Construction industry, FLR’s P/S Ratio of 0.52 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

ADP vs. FLR: A comparison of their P/S Ratio against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

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.

FLR

2.49

Engineering & Construction Industry

Max
10.70
Q3
7.33
Median
4.69
Q1
2.53
Min
0.79

FLR’s P/B Ratio of 2.49 is in the lower quartile for the Engineering & Construction industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

ADP vs. FLR: A comparison of their P/B Ratio against their respective Staffing & Employment Services and Engineering & Construction industry benchmarks.

Valuation at a Glance

SymbolADPFLR
Price-to-Earnings Ratio (P/E, TTM)31.474.84
Forward PEG Ratio (TTM)3.560.41
Price-to-Sales Ratio (P/S, TTM)6.210.52
Price-to-Book Ratio (P/B, TTM)21.492.49
Price-to-Free Cash Flow Ratio (P/FCF, TTM)27.7716.97
EV-to-EBITDA (TTM)20.5712.10
EV-to-Sales (TTM)6.290.44