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

Updated

Here’s a clear look at ADP and GD, 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 GD’s 74.53 billion USD by roughly 1.76×.

ADP’s beta of 0.78 points to much larger expected swings compared to GD’s calmer 0.50, suggesting both higher upside and downside potential.

SymbolADPGD
Company NameAutomatic Data Processing, Inc.General Dynamics Corporation
CountryUSUS
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesAerospace & Defense
CEOMs. Maria BlackMs. Phebe N. Novakovic
Price322.63 USD277.7 USD
Market Cap130.96 billion USD74.53 billion USD
Beta0.780.50
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980January 13, 1978
ADRNoNo

Performance Comparison

This chart compares the performance of ADP and GD 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 GD, please refer to the table below.

SymbolADPGD
Price-to-Earnings Ratio (P/E, TTM)32.8318.79
Forward PEG Ratio (TTM)3.722.11
Price-to-Sales Ratio (P/S, TTM)6.481.51
Price-to-Book Ratio (P/B, TTM)22.423.36
Price-to-Free Cash Flow Ratio (P/FCF, TTM)28.9722.30
EV-to-EBITDA (TTM)21.4514.42
EV-to-Sales (TTM)6.561.72
EV-to-Free Cash Flow (TTM)29.3225.37

Dividend Comparison

Both ADP and GD offer similar dividend yields (1.82% vs. 2.07%), indicating comparable approaches to balancing income and growth.

SymbolADPGD
Dividend Yield (TTM)1.82%2.07%

Financial Strength Metrics Comparison

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

  • ADP (at 7.90) covers its interest payments, while GD shows “--” for minimal debt service.
SymbolADPGD
Current Ratio (TTM)1.021.34
Quick Ratio (TTM)1.020.82
Debt-to-Equity Ratio (TTM)0.730.52
Debt-to-Assets Ratio (TTM)0.080.20
Interest Coverage Ratio (TTM)7.90--