ADP vs. HUBB: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and HUBB, 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 HUBB’s 22.14 billion USD, indicating a significant difference in their market valuations.
With betas of 0.80 for ADP and 0.98 for HUBB, both stocks show similar sensitivity to overall market movements.
| Symbol | ADP | HUBB |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Hubbell Incorporated |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Electrical Equipment & Parts |
| CEO | Maria Black | Gerben W. Bakker |
| Price | 309.2 USD | 414.84 USD |
| Market Cap | 125.51 billion USD | 22.14 billion USD |
| Beta | 0.80 | 0.98 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | June 5, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADP and HUBB 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.
HUBB
24.97%
Electrical Equipment & Parts Industry
- Max
- 40.77%
- Q3
- 24.97%
- Median
- 9.16%
- Q1
- -21.24%
- Min
- -83.49%
HUBB’s Return on Equity of 24.97% is on par with the norm for the Electrical Equipment & Parts industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
HUBB
15.01%
Electrical Equipment & Parts Industry
- Max
- 28.65%
- Q3
- 9.59%
- Median
- 4.18%
- Q1
- -26.21%
- Min
- -64.66%
In the upper quartile for the Electrical Equipment & Parts industry, HUBB’s Return on Invested Capital of 15.01% 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.
HUBB
14.29%
Electrical Equipment & Parts Industry
- Max
- 18.22%
- Q3
- 10.17%
- Median
- 3.30%
- Q1
- -100.73%
- Min
- -135.80%
A Net Profit Margin of 14.29% places HUBB in the upper quartile for the Electrical Equipment & Parts 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.
HUBB
19.78%
Electrical Equipment & Parts Industry
- Max
- 19.88%
- Q3
- 14.79%
- Median
- 7.23%
- Q1
- -48.45%
- Min
- -140.29%
An Operating Profit Margin of 19.78% places HUBB in the upper quartile for the Electrical Equipment & Parts 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 | HUBB |
|---|---|---|
| Return on Equity (TTM) | 76.78% | 24.97% |
| Return on Assets (TTM) | 7.08% | 11.55% |
| Return on Invested Capital (TTM) | 23.22% | 15.01% |
| Net Profit Margin (TTM) | 19.79% | 14.29% |
| Operating Profit Margin (TTM) | 17.38% | 19.78% |
| Gross Profit Margin (TTM) | 47.09% | 34.13% |
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.
HUBB
1.17
Electrical Equipment & Parts Industry
- Max
- 4.74
- Q3
- 3.44
- Median
- 2.63
- Q1
- 1.95
- Min
- 1.17
HUBB’s Current Ratio of 1.17 falls into the lower quartile for the Electrical Equipment & Parts industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
HUBB
0.61
Electrical Equipment & Parts Industry
- Max
- 0.82
- Q3
- 0.68
- Median
- 0.61
- Q1
- 0.47
- Min
- 0.33
HUBB’s Debt-to-Equity Ratio of 0.61 is typical for the Electrical Equipment & Parts 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.
HUBB
21.00
Electrical Equipment & Parts Industry
- Max
- 21.00
- Q3
- 9.09
- Median
- 3.12
- Q1
- -7.14
- Min
- -31.43
HUBB’s Interest Coverage Ratio of 21.00 is in the upper quartile for the Electrical Equipment & Parts industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADP | HUBB |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.17 |
| Quick Ratio (TTM) | 1.02 | 0.73 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 0.61 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.29 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 1.28 |
| Interest Coverage Ratio (TTM) | 7.90 | 21.00 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADP and HUBB. 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.
HUBB
1.25%
Electrical Equipment & Parts Industry
- Max
- 1.81%
- Q3
- 0.50%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.25%, HUBB offers a more attractive income stream than most of its peers in the Electrical Equipment & Parts industry, signaling a strong commitment to shareholder returns.
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.
HUBB
34.08%
Electrical Equipment & Parts Industry
- Max
- 162.68%
- Q3
- 20.84%
- Median
- 4.65%
- Q1
- 0.00%
- Min
- 0.00%
HUBB’s Dividend Payout Ratio of 34.08% is in the upper quartile for the Electrical Equipment & Parts industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ADP | HUBB |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 1.25% |
| Dividend Payout Ratio (TTM) | 58.73% | 34.08% |
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.
HUBB
28.07
Electrical Equipment & Parts Industry
- Max
- 27.52
- Q3
- 27.52
- Median
- 24.22
- Q1
- 20.08
- Min
- 9.48
At 28.07, HUBB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Electrical Equipment & Parts industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
HUBB
2.09
Electrical Equipment & Parts Industry
- Max
- 5.30
- Q3
- 4.04
- Median
- 2.62
- Q1
- 2.03
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Electrical Equipment & Parts industry.
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.
HUBB
3.96
Electrical Equipment & Parts Industry
- Max
- 5.76
- Q3
- 5.66
- Median
- 3.18
- Q1
- 1.88
- Min
- 0.31
HUBB’s P/S Ratio of 3.96 aligns with the market consensus for the Electrical Equipment & Parts industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
HUBB
6.86
Electrical Equipment & Parts Industry
- Max
- 10.91
- Q3
- 6.77
- Median
- 3.73
- Q1
- 1.80
- Min
- 0.59
HUBB’s P/B Ratio of 6.86 is in the upper tier for the Electrical Equipment & Parts industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ADP | HUBB |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 31.47 | 28.07 |
| Forward PEG Ratio (TTM) | 3.56 | 2.09 |
| Price-to-Sales Ratio (P/S, TTM) | 6.21 | 3.96 |
| Price-to-Book Ratio (P/B, TTM) | 21.49 | 6.86 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.77 | 28.74 |
| EV-to-EBITDA (TTM) | 20.57 | 18.38 |
| EV-to-Sales (TTM) | 6.29 | 4.25 |