ADP vs. MMM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADP and MMM, 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 MMM’s 80.40 billion USD by roughly 1.63×.
With betas of 0.78 for ADP and 1.08 for MMM, both show similar volatility profiles relative to the overall market.
| Symbol | ADP | MMM |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | 3M Company |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Conglomerates |
| CEO | Ms. Maria Black | Mr. William M. Brown |
| Price | 322.63 USD | 149.4 USD |
| Market Cap | 130.96 billion USD | 80.40 billion USD |
| Beta | 0.78 | 1.08 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | January 14, 1946 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ADP and MMM 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 MMM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- MMM reports a negative Price-to-Free Cash Flow ratio of -1165.28, showing a cash flow shortfall that could threaten its operational sustainability, while ADP at 28.97 maintains positive cash flow.
| Symbol | ADP | MMM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.83 | 18.63 |
| Forward PEG Ratio (TTM) | 3.72 | 2.02 |
| Price-to-Sales Ratio (P/S, TTM) | 6.48 | 3.28 |
| Price-to-Book Ratio (P/B, TTM) | 22.42 | 18.20 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 28.97 | -1165.28 |
| EV-to-EBITDA (TTM) | 21.45 | 13.36 |
| EV-to-Sales (TTM) | 6.56 | 3.60 |
| EV-to-Free Cash Flow (TTM) | 29.32 | -1277.47 |
Dividend Comparison
Both ADP and MMM offer similar dividend yields (1.82% vs. 1.89%), indicating comparable approaches to balancing income and growth.
| Symbol | ADP | MMM |
|---|---|---|
| Dividend Yield (TTM) | 1.82% | 1.89% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ADP and MMM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- MMM is highly leveraged (debt-to-equity ratio 3.15), elevating both potential gains and risks, compared to ADP at 0.73, which maintains a steadier capital structure.
| Symbol | ADP | MMM |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.66 |
| Quick Ratio (TTM) | 1.02 | 1.25 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 3.15 |
| Debt-to-Assets Ratio (TTM) | 0.08 | 0.35 |
| Interest Coverage Ratio (TTM) | 7.90 | 4.45 |