ADP vs. GWW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and GWW, 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 GWW’s 50.46 billion USD, indicating a significant difference in their market valuations.
GWW carries a higher beta at 1.21, indicating it’s more sensitive to market moves, while ADP (beta: 0.80) exhibits greater stability.
| Symbol | ADP | GWW |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | W.W. Grainger, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Industrial - Distribution |
| CEO | Maria Black | Donald G. Macpherson |
| Price | 309.2 USD | 1,050.49 USD |
| Market Cap | 125.51 billion USD | 50.46 billion USD |
| Beta | 0.80 | 1.21 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | February 21, 1973 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADP and GWW 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.
GWW
56.10%
Industrial - Distribution Industry
- Max
- 31.99%
- Q3
- 26.73%
- Median
- 19.92%
- Q1
- 10.89%
- Min
- -9.35%
GWW’s Return on Equity of 56.10% is exceptionally high, placing it well beyond the typical range for the Industrial - Distribution industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
GWW
30.61%
Industrial - Distribution Industry
- Max
- 30.61%
- Q3
- 16.52%
- Median
- 12.03%
- Q1
- 6.68%
- Min
- -1.11%
In the upper quartile for the Industrial - Distribution industry, GWW’s Return on Invested Capital of 30.61% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
GWW
11.08%
Industrial - Distribution Industry
- Max
- 11.08%
- Q3
- 7.38%
- Median
- 5.32%
- Q1
- 3.79%
- Min
- 0.06%
A Net Profit Margin of 11.08% places GWW in the upper quartile for the Industrial - Distribution 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.
GWW
15.31%
Industrial - Distribution Industry
- Max
- 15.31%
- Q3
- 10.56%
- Median
- 8.43%
- Q1
- 5.85%
- Min
- -0.91%
An Operating Profit Margin of 15.31% places GWW in the upper quartile for the Industrial - Distribution industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ADP | GWW |
|---|---|---|
| Return on Equity (TTM) | 76.78% | 56.10% |
| Return on Assets (TTM) | 7.08% | 22.06% |
| Return on Invested Capital (TTM) | 23.22% | 30.61% |
| Net Profit Margin (TTM) | 19.79% | 11.08% |
| Operating Profit Margin (TTM) | 17.38% | 15.31% |
| Gross Profit Margin (TTM) | 47.09% | 39.45% |
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.
GWW
2.74
Industrial - Distribution Industry
- Max
- 3.57
- Q3
- 2.74
- Median
- 2.29
- Q1
- 1.94
- Min
- 1.33
GWW’s Current Ratio of 2.74 is in the upper quartile for the Industrial - Distribution industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
GWW
0.77
Industrial - Distribution Industry
- Max
- 1.67
- Q3
- 1.26
- Median
- 0.77
- Q1
- 0.30
- Min
- 0.13
GWW’s Debt-to-Equity Ratio of 0.77 is typical for the Industrial - Distribution 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.
GWW
34.29
Industrial - Distribution Industry
- Max
- 34.29
- Q3
- 28.91
- Median
- 12.63
- Q1
- 3.84
- Min
- -0.41
GWW’s Interest Coverage Ratio of 34.29 is in the upper quartile for the Industrial - Distribution industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADP | GWW |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 2.74 |
| Quick Ratio (TTM) | 1.02 | 1.60 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 0.77 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.31 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 0.71 |
| Interest Coverage Ratio (TTM) | 7.90 | 34.29 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADP and GWW. 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.
GWW
0.80%
Industrial - Distribution Industry
- Max
- 3.95%
- Q3
- 2.10%
- Median
- 0.82%
- Q1
- 0.00%
- Min
- 0.00%
GWW’s Dividend Yield of 0.80% is consistent with its peers in the Industrial - Distribution industry, providing a dividend return that is standard for its sector.
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.
GWW
22.57%
Industrial - Distribution Industry
- Max
- 88.24%
- Q3
- 56.62%
- Median
- 19.45%
- Q1
- 0.00%
- Min
- 0.00%
GWW’s Dividend Payout Ratio of 22.57% is within the typical range for the Industrial - Distribution industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | GWW |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 0.80% |
| Dividend Payout Ratio (TTM) | 58.73% | 22.57% |
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.
GWW
26.51
Industrial - Distribution Industry
- Max
- 53.67
- Q3
- 39.13
- Median
- 26.86
- Q1
- 22.49
- Min
- 12.77
GWW’s P/E Ratio of 26.51 is within the middle range for the Industrial - Distribution industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
GWW
2.91
Industrial - Distribution Industry
- Max
- 4.88
- Q3
- 3.36
- Median
- 2.85
- Q1
- 1.53
- Min
- 0.12
GWW’s Forward PEG Ratio of 2.91 is within the middle range of its peers in the Industrial - Distribution 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.
GWW
2.93
Industrial - Distribution Industry
- Max
- 2.87
- Q3
- 2.21
- Median
- 1.42
- Q1
- 0.77
- Min
- 0.17
With a P/S Ratio of 2.93, GWW trades at a valuation that eclipses even the highest in the Industrial - Distribution industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
GWW
14.55
Industrial - Distribution Industry
- Max
- 13.04
- Q3
- 7.19
- Median
- 3.64
- Q1
- 2.91
- Min
- 0.74
At 14.55, GWW’s P/B Ratio is at an extreme premium to the Industrial - Distribution 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.
Valuation at a Glance
| Symbol | ADP | GWW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 31.47 | 26.51 |
| Forward PEG Ratio (TTM) | 3.56 | 2.91 |
| Price-to-Sales Ratio (P/S, TTM) | 6.21 | 2.93 |
| Price-to-Book Ratio (P/B, TTM) | 21.49 | 14.55 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.77 | 32.58 |
| EV-to-EBITDA (TTM) | 20.57 | 18.49 |
| EV-to-Sales (TTM) | 6.29 | 3.04 |