ADP vs. HON: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and HON, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADP | HON |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Honeywell International Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Professional Services | Industrial Conglomerates |
| Market Capitalization | 125.17 billion USD | 137.77 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 17, 1980 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADP and HON 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.
Historical Performance at a Glance
| Symbol | ADP | HON |
|---|---|---|
| 5-Day Price Return | 0.25% | -0.55% |
| 13-Week Price Return | -4.27% | -3.53% |
| 26-Week Price Return | -0.30% | 5.71% |
| 52-Week Price Return | 15.76% | 9.02% |
| Month-to-Date Return | -1.22% | -2.41% |
| Year-to-Date Return | 4.44% | -3.94% |
| 10-Day Avg. Volume | 1.40M | 3.26M |
| 3-Month Avg. Volume | 1.62M | 3.67M |
| 3-Month Volatility | 17.03% | 18.85% |
| Beta | 0.86 | 1.07 |
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.
HON
32.86%
Industrial Conglomerates Industry
- Max
- 21.93%
- Q3
- 14.23%
- Median
- 7.81%
- Q1
- 5.91%
- Min
- -3.58%
HON’s Return on Equity of 32.86% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
HON
14.30%
Industrial Conglomerates Industry
- Max
- 18.70%
- Q3
- 12.58%
- Median
- 9.26%
- Q1
- 3.87%
- Min
- -2.26%
A Net Profit Margin of 14.30% places HON in the upper quartile for the Industrial Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.
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.
HON
17.81%
Industrial Conglomerates Industry
- Max
- 25.69%
- Q3
- 17.03%
- Median
- 12.85%
- Q1
- 8.81%
- Min
- -0.73%
An Operating Profit Margin of 17.81% places HON in the upper quartile for the Industrial Conglomerates 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 | HON |
|---|---|---|
| Return on Equity (TTM) | 72.62% | 32.86% |
| Return on Assets (TTM) | 7.30% | 7.56% |
| Net Profit Margin (TTM) | 19.84% | 14.30% |
| Operating Profit Margin (TTM) | 26.32% | 17.81% |
| Gross Profit Margin (TTM) | 47.37% | 38.08% |
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.
HON
1.29
Industrial Conglomerates Industry
- Max
- 2.19
- Q3
- 1.64
- Median
- 1.38
- Q1
- 1.13
- Min
- 0.61
HON’s Current Ratio of 1.29 aligns with the median group of the Industrial Conglomerates industry, indicating that its short-term liquidity is in line with its sector peers.
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.
HON
2.27
Industrial Conglomerates Industry
- Max
- 2.27
- Q3
- 1.47
- Median
- 0.99
- Q1
- 0.66
- Min
- 0.21
HON’s leverage is in the upper quartile of the Industrial Conglomerates industry, with a Debt-to-Equity Ratio of 2.27. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
HON
7.76
Industrial Conglomerates Industry
- Max
- 11.17
- Q3
- 8.02
- Median
- 5.88
- Q1
- 2.73
- Min
- -2.15
HON’s Interest Coverage Ratio of 7.76 is positioned comfortably within the norm for the Industrial Conglomerates industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ADP | HON |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 1.29 |
| Quick Ratio (MRQ) | 1.05 | 0.97 |
| Debt-to-Equity Ratio (MRQ) | 1.41 | 2.27 |
| Interest Coverage Ratio (TTM) | 39.45 | 7.76 |
Growth
Revenue Growth
EPS Growth
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.
HON
2.13%
Industrial Conglomerates Industry
- Max
- 10.17%
- Q3
- 5.53%
- Median
- 3.14%
- Q1
- 1.88%
- Min
- 0.00%
HON’s Dividend Yield of 2.13% is consistent with its peers in the Industrial Conglomerates industry, providing a dividend return that is standard for its sector.
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.
HON
51.34%
Industrial Conglomerates Industry
- Max
- 181.91%
- Q3
- 95.57%
- Median
- 50.60%
- Q1
- 35.01%
- Min
- 1.76%
HON’s Dividend Payout Ratio of 51.34% is within the typical range for the Industrial Conglomerates industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | HON |
|---|---|---|
| Dividend Yield (TTM) | 1.92% | 2.13% |
| Dividend Payout Ratio (TTM) | 58.80% | 51.34% |
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.
HON
24.10
Industrial Conglomerates Industry
- Max
- 36.98
- Q3
- 22.09
- Median
- 12.18
- Q1
- 8.93
- Min
- 5.63
A P/E Ratio of 24.10 places HON in the upper quartile for the Industrial Conglomerates industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
HON
3.45
Industrial Conglomerates Industry
- Max
- 3.60
- Q3
- 2.10
- Median
- 0.68
- Q1
- 0.42
- Min
- 0.11
HON’s P/S Ratio of 3.45 is in the upper echelon for the Industrial Conglomerates 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 (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.
HON
9.30
Industrial Conglomerates Industry
- Max
- 4.89
- Q3
- 2.51
- Median
- 1.06
- Q1
- 0.60
- Min
- 0.27
At 9.30, HON’s P/B Ratio is at an extreme premium to the Industrial Conglomerates 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 | HON |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 30.59 | 24.10 |
| Price-to-Sales Ratio (TTM) | 6.07 | 3.45 |
| Price-to-Book Ratio (MRQ) | 20.23 | 9.30 |
| Price-to-Free Cash Flow Ratio (TTM) | 28.41 | 27.73 |