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

Updated on August 22, 2025

Here’s a clear look at ADP and GD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	ADP	GD
Company Name	Automatic Data Processing, Inc.	General Dynamics Corporation
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Professional Services	Aerospace & Defense
Market Capitalization	125.17 billion USD	85.40 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	March 17, 1980	January 2, 1962
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of ADP and GD 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. GD: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	ADP	GD
5-Day Price Return	0.25%	0.52%
13-Week Price Return	-4.27%	12.83%
26-Week Price Return	-0.30%	28.97%
52-Week Price Return	15.76%	7.40%
Month-to-Date Return	-1.22%	1.88%
Year-to-Date Return	4.44%	20.49%
10-Day Avg. Volume	1.40M	0.91M
3-Month Avg. Volume	1.62M	1.21M
3-Month Volatility	17.03%	17.95%
Beta	0.86	0.48

Profitability

Return on Equity (TTM)

ADP

72.62%

Professional Services Industry

Max: 52.17%
Q3: 30.06%
Median: 22.21%
Q1: 11.67%
Min: -13.44%

ADP’s Return on Equity of 72.62% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

GD

17.99%

Aerospace & Defense Industry

Max: 43.89%
Q3: 22.42%
Median: 12.50%
Q1: 5.21%
Min: -6.24%

GD’s Return on Equity of 17.99% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

ADP vs. GD: A comparison of their Return on Equity (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

ADP

19.84%

Professional Services Industry

Max: 26.06%
Q3: 13.34%
Median: 7.88%
Q1: 3.50%
Min: -2.93%

A Net Profit Margin of 19.84% places ADP in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.

GD

8.13%

Aerospace & Defense Industry

Max: 14.54%
Q3: 8.08%
Median: 6.17%
Q1: 2.49%
Min: -1.63%

A Net Profit Margin of 8.13% places GD in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.

ADP vs. GD: A comparison of their Net Profit Margin (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

ADP

26.32%

Professional Services Industry

Max: 35.84%
Q3: 19.38%
Median: 12.54%
Q1: 7.36%
Min: -5.21%

An Operating Profit Margin of 26.32% places ADP in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

GD

10.30%

Aerospace & Defense Industry

Max: 16.63%
Q3: 10.38%
Median: 8.29%
Q1: 6.21%
Min: 0.95%

GD’s Operating Profit Margin of 10.30% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

ADP vs. GD: A comparison of their Operating Profit Margin (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Profitability at a Glance

Symbol	ADP	GD
Return on Equity (TTM)	72.62%	17.99%
Return on Assets (TTM)	7.30%	7.21%
Net Profit Margin (TTM)	19.84%	8.13%
Operating Profit Margin (TTM)	26.32%	10.30%
Gross Profit Margin (TTM)	47.37%	15.40%

Financial Strength

Current Ratio (MRQ)

ADP

1.05

Professional Services Industry

Max: 2.45
Q3: 1.65
Median: 1.26
Q1: 1.10
Min: 0.47

ADP’s Current Ratio of 1.05 falls into the lower quartile for the Professional Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

GD

1.36

Aerospace & Defense Industry

Max: 3.09
Q3: 1.98
Median: 1.23
Q1: 1.03
Min: 0.02

GD’s Current Ratio of 1.36 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

ADP vs. GD: A comparison of their Current Ratio (MRQ) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ADP

1.41

Professional Services Industry

Max: 2.63
Q3: 1.44
Median: 0.91
Q1: 0.49
Min: 0.00

ADP’s Debt-to-Equity Ratio of 1.41 is typical for the Professional Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GD

0.37

Aerospace & Defense Industry

Max: 1.70
Q3: 1.04
Median: 0.68
Q1: 0.41
Min: 0.00

Falling into the lower quartile for the Aerospace & Defense industry, GD’s Debt-to-Equity Ratio of 0.37 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ADP vs. GD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

ADP

39.45

Professional Services Industry

Max: 39.67
Q3: 20.05
Median: 11.07
Q1: 5.36
Min: -2.22

ADP’s Interest Coverage Ratio of 39.45 is in the upper quartile for the Professional Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

GD

15.01

Aerospace & Defense Industry

Max: 36.57
Q3: 19.90
Median: 7.04
Q1: 2.40
Min: -7.63

GD’s Interest Coverage Ratio of 15.01 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

ADP vs. GD: A comparison of their Interest Coverage Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

Symbol	ADP	GD
Current Ratio (MRQ)	1.05	1.36
Quick Ratio (MRQ)	1.05	0.83
Debt-to-Equity Ratio (MRQ)	1.41	0.37
Interest Coverage Ratio (TTM)	39.45	15.01

Growth

Revenue Growth

ADP vs. GD: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ADP vs. GD: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ADP

1.92%

Professional Services Industry

Max: 5.28%
Q3: 2.51%
Median: 1.63%
Q1: 0.62%
Min: 0.00%

ADP’s Dividend Yield of 1.92% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.

GD

1.83%

Aerospace & Defense Industry

Max: 2.03%
Q3: 1.22%
Median: 0.43%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.83%, GD offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.

ADP vs. GD: A comparison of their Dividend Yield (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

ADP

58.80%

Professional Services Industry

Max: 109.23%
Q3: 64.39%
Median: 47.00%
Q1: 20.35%
Min: 0.00%

ADP’s Dividend Payout Ratio of 58.80% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GD

38.28%

Aerospace & Defense Industry

Max: 83.87%
Q3: 49.90%
Median: 16.48%
Q1: 0.00%
Min: 0.00%

GD’s Dividend Payout Ratio of 38.28% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ADP vs. GD: A comparison of their Dividend Payout Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Dividend at a Glance

Symbol	ADP	GD
Dividend Yield (TTM)	1.92%	1.83%
Dividend Payout Ratio (TTM)	58.80%	38.28%

Valuation

Price-to-Earnings Ratio (TTM)

ADP

30.59

Professional Services Industry

Max: 49.59
Q3: 36.59
Median: 28.13
Q1: 18.55
Min: 10.07

ADP’s P/E Ratio of 30.59 is within the middle range for the Professional Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GD

20.88

Aerospace & Defense Industry

Max: 65.97
Q3: 54.11
Median: 34.53
Q1: 23.66
Min: 0.00

In the lower quartile for the Aerospace & Defense industry, GD’s P/E Ratio of 20.88 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ADP vs. GD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

ADP

6.07

Professional Services Industry

Max: 9.54
Q3: 5.11
Median: 2.10
Q1: 0.75
Min: 0.11

ADP’s P/S Ratio of 6.07 is in the upper echelon for the Professional Services 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.

GD

1.70

Aerospace & Defense Industry

Max: 8.07
Q3: 4.49
Median: 2.42
Q1: 1.39
Min: 0.00

GD’s P/S Ratio of 1.70 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ADP vs. GD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

ADP

20.23

Professional Services Industry

Max: 13.75
Q3: 8.87
Median: 4.35
Q1: 2.43
Min: 0.54

At 20.23, ADP’s P/B Ratio is at an extreme premium to the Professional Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

GD

3.32

Aerospace & Defense Industry

Max: 13.67
Q3: 7.92
Median: 4.65
Q1: 2.68
Min: 0.82

GD’s P/B Ratio of 3.32 is within the conventional range for the Aerospace & Defense 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.

ADP vs. GD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Valuation at a Glance

Symbol	ADP	GD
Price-to-Earnings Ratio (TTM)	30.59	20.88
Price-to-Sales Ratio (TTM)	6.07	1.70
Price-to-Book Ratio (MRQ)	20.23	3.32
Price-to-Free Cash Flow Ratio (TTM)	28.41	19.34