ADP vs. LUV: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADP and LUV, 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
ADP dominates in value with a market cap of 130.96 billion USD, eclipsing LUV’s 18.10 billion USD by roughly 7.24×.
LUV carries a higher beta at 1.18, indicating it’s more sensitive to market moves, while ADP remains steadier at 0.78.
| Symbol | ADP | LUV |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Southwest Airlines Co. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Airlines, Airports & Air Services |
| CEO | Ms. Maria Black | Mr. Robert E. Jordan |
| Price | 322.63 USD | 31.76 USD |
| Market Cap | 130.96 billion USD | 18.10 billion USD |
| Beta | 0.78 | 1.18 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | January 2, 1980 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ADP and LUV 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
The section examines key financial ratios to assess the valuation of ADP and LUV based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- LUV reports a negative Price-to-Free Cash Flow ratio of -32.15, showing a cash flow shortfall that could threaten its operational sustainability, while ADP at 28.97 maintains positive cash flow.
| Symbol | ADP | LUV |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.83 | 33.97 |
| Forward PEG Ratio (TTM) | 3.72 | 0.92 |
| Price-to-Sales Ratio (P/S, TTM) | 6.48 | 0.66 |
| Price-to-Book Ratio (P/B, TTM) | 22.42 | 1.98 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 28.97 | -32.15 |
| EV-to-EBITDA (TTM) | 21.45 | 6.97 |
| EV-to-Sales (TTM) | 6.56 | 0.65 |
| EV-to-Free Cash Flow (TTM) | 29.32 | -31.90 |
Dividend Comparison
Both ADP and LUV offer similar dividend yields (1.82% vs. 2.27%), indicating comparable approaches to balancing income and growth.
| Symbol | ADP | LUV |
|---|---|---|
| Dividend Yield (TTM) | 1.82% | 2.27% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ADP and LUV, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- LUV’s current ratio of 0.77 indicates its assets may not cover near-term debts, whereas ADP at 1.02 maintains healthy liquidity.
- LUV posts a quick ratio of 0.72, indicating limited coverage of short-term debts from its most liquid assets—while ADP at 1.02 enjoys stronger liquidity resilience.
| Symbol | ADP | LUV |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 0.77 |
| Quick Ratio (TTM) | 1.02 | 0.72 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 0.85 |
| Debt-to-Assets Ratio (TTM) | 0.08 | 0.24 |
| Interest Coverage Ratio (TTM) | 7.90 | 2.88 |