ADP vs. LMT: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADP and LMT, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
With ADP at 130.96 billion USD and LMT at 110.18 billion USD, their market capitalizations sit in the same ballpark.
ADP’s beta of 0.78 points to much larger expected swings compared to LMT’s calmer 0.29, suggesting both higher upside and downside potential.
| Symbol | ADP | LMT |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Lockheed Martin Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Aerospace & Defense |
| CEO | Ms. Maria Black | Mr. James D. Taiclet Jr. |
| Price | 322.63 USD | 470.28 USD |
| Market Cap | 130.96 billion USD | 110.18 billion USD |
| Beta | 0.78 | 0.29 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | January 3, 1977 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ADP and LMT over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
For a detailed comparison of valuation metrics between ADP and LMT, please refer to the table below.
| Symbol | ADP | LMT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.83 | 20.03 |
| Forward PEG Ratio (TTM) | 3.72 | 5.49 |
| Price-to-Sales Ratio (P/S, TTM) | 6.48 | 1.53 |
| Price-to-Book Ratio (P/B, TTM) | 22.42 | 16.49 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 28.97 | 22.10 |
| EV-to-EBITDA (TTM) | 21.45 | 14.18 |
| EV-to-Sales (TTM) | 6.56 | 1.79 |
| EV-to-Free Cash Flow (TTM) | 29.32 | 25.81 |
Dividend Comparison
LMT stands out with a 2.74% dividend yield—around 51% above ADP’s 1.82%—highlighting its emphasis on generous payouts.
| Symbol | ADP | LMT |
|---|---|---|
| Dividend Yield (TTM) | 1.82% | 2.74% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ADP and LMT, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- LMT is highly leveraged (debt-to-equity ratio 3.04), elevating both potential gains and risks, compared to ADP at 0.73, which maintains a steadier capital structure.
| Symbol | ADP | LMT |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.08 |
| Quick Ratio (TTM) | 1.02 | 0.91 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 3.04 |
| Debt-to-Assets Ratio (TTM) | 0.08 | 0.36 |
| Interest Coverage Ratio (TTM) | 7.90 | 7.08 |