ADP vs. KFY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and KFY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADP | KFY |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Korn Ferry |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Professional Services | Professional Services |
| Market Capitalization | 124.73 billion USD | 4.00 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | March 17, 1980 | February 11, 1999 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADP and KFY 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 | KFY |
|---|---|---|
| 5-Day Price Return | 1.75% | 4.48% |
| 13-Week Price Return | -4.55% | 12.69% |
| 26-Week Price Return | -0.65% | 15.24% |
| 52-Week Price Return | 14.97% | 8.09% |
| Month-to-Date Return | -0.50% | 7.89% |
| Year-to-Date Return | 5.20% | 13.36% |
| 10-Day Avg. Volume | 1.38M | 0.26M |
| 3-Month Avg. Volume | 1.59M | 0.41M |
| 3-Month Volatility | 17.17% | 26.82% |
| Beta | 0.86 | 1.52 |
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.
KFY
13.69%
Professional Services Industry
- Max
- 52.17%
- Q3
- 30.06%
- Median
- 22.21%
- Q1
- 11.67%
- Min
- -13.44%
KFY’s Return on Equity of 13.69% is on par with the norm for the Professional Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
KFY
8.91%
Professional Services Industry
- Max
- 26.06%
- Q3
- 13.34%
- Median
- 7.88%
- Q1
- 3.50%
- Min
- -2.93%
KFY’s Net Profit Margin of 8.91% is aligned with the median group of its peers in the Professional Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
KFY
12.54%
Professional Services Industry
- Max
- 35.84%
- Q3
- 19.38%
- Median
- 12.54%
- Q1
- 7.36%
- Min
- -5.21%
KFY’s Operating Profit Margin of 12.54% is around the midpoint for the Professional Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADP | KFY |
|---|---|---|
| Return on Equity (TTM) | 72.62% | 13.69% |
| Return on Assets (TTM) | 7.30% | 6.79% |
| Net Profit Margin (TTM) | 19.84% | 8.91% |
| Operating Profit Margin (TTM) | 26.32% | 12.54% |
| Gross Profit Margin (TTM) | 47.37% | 88.55% |
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.
KFY
1.83
Professional Services Industry
- Max
- 2.45
- Q3
- 1.65
- Median
- 1.26
- Q1
- 1.10
- Min
- 0.47
KFY’s Current Ratio of 1.83 is in the upper quartile for the Professional Services 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 (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.
KFY
0.21
Professional Services Industry
- Max
- 2.63
- Q3
- 1.44
- Median
- 0.91
- Q1
- 0.49
- Min
- 0.00
Falling into the lower quartile for the Professional Services industry, KFY’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
KFY
49.83
Professional Services Industry
- Max
- 39.67
- Q3
- 20.05
- Median
- 11.07
- Q1
- 5.36
- Min
- -2.22
With an Interest Coverage Ratio of 49.83, KFY demonstrates a superior capacity to service its debt, placing it well above the typical range for the Professional Services industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ADP | KFY |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 1.83 |
| Quick Ratio (MRQ) | 1.05 | 1.79 |
| Debt-to-Equity Ratio (MRQ) | 1.41 | 0.21 |
| Interest Coverage Ratio (TTM) | 39.45 | 49.83 |
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.
KFY
2.20%
Professional Services Industry
- Max
- 5.28%
- Q3
- 2.51%
- Median
- 1.63%
- Q1
- 0.62%
- Min
- 0.00%
KFY’s Dividend Yield of 2.20% is consistent with its peers in the Professional Services 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.
KFY
33.99%
Professional Services Industry
- Max
- 109.23%
- Q3
- 64.39%
- Median
- 47.00%
- Q1
- 20.35%
- Min
- 0.00%
KFY’s Dividend Payout Ratio of 33.99% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | KFY |
|---|---|---|
| Dividend Yield (TTM) | 1.92% | 2.20% |
| Dividend Payout Ratio (TTM) | 58.80% | 33.99% |
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.
KFY
15.46
Professional Services Industry
- Max
- 49.59
- Q3
- 36.59
- Median
- 28.13
- Q1
- 18.55
- Min
- 10.07
In the lower quartile for the Professional Services industry, KFY’s P/E Ratio of 15.46 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
KFY
1.38
Professional Services Industry
- Max
- 9.54
- Q3
- 5.11
- Median
- 2.10
- Q1
- 0.75
- Min
- 0.11
KFY’s P/S Ratio of 1.38 aligns with the market consensus for the Professional Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
KFY
1.71
Professional Services Industry
- Max
- 13.75
- Q3
- 8.87
- Median
- 4.35
- Q1
- 2.43
- Min
- 0.54
KFY’s P/B Ratio of 1.71 is in the lower quartile for the Professional Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ADP | KFY |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 30.59 | 15.46 |
| Price-to-Sales Ratio (TTM) | 6.07 | 1.38 |
| Price-to-Book Ratio (MRQ) | 20.23 | 1.71 |
| Price-to-Free Cash Flow Ratio (TTM) | 28.41 | 7.05 |