ADP vs. OTIS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADP and OTIS, 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 OTIS’s 38.53 billion USD by roughly 3.40×.
With betas of 0.78 for ADP and 1.00 for OTIS, both show similar volatility profiles relative to the overall market.
| Symbol | ADP | OTIS |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Otis Worldwide Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Industrial - Machinery |
| CEO | Ms. Maria Black | Ms. Judith F. Marks |
| Price | 322.63 USD | 97.63 USD |
| Market Cap | 130.96 billion USD | 38.53 billion USD |
| Beta | 0.78 | 1.00 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | March 19, 2020 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ADP and OTIS 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 OTIS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- OTIS carries a sub-zero price-to-book ratio of -7.55, indicating negative equity. In contrast, ADP (P/B 22.42) has positive book value.
| Symbol | ADP | OTIS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.83 | 25.22 |
| Forward PEG Ratio (TTM) | 3.72 | 2.59 |
| Price-to-Sales Ratio (P/S, TTM) | 6.48 | 2.72 |
| Price-to-Book Ratio (P/B, TTM) | 22.42 | -7.55 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 28.97 | 26.52 |
| EV-to-EBITDA (TTM) | 21.45 | 21.55 |
| EV-to-Sales (TTM) | 6.56 | 3.20 |
| EV-to-Free Cash Flow (TTM) | 29.32 | 31.20 |
Dividend Comparison
Both ADP and OTIS offer similar dividend yields (1.82% vs. 1.63%), indicating comparable approaches to balancing income and growth.
| Symbol | ADP | OTIS |
|---|---|---|
| Dividend Yield (TTM) | 1.82% | 1.63% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ADP and OTIS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- OTIS’s current ratio of 0.94 indicates its assets may not cover near-term debts, whereas ADP at 1.02 maintains healthy liquidity.
- OTIS has negative equity (debt-to-equity ratio -1.70), suggesting asset shortfalls, whereas ADP at 0.73 preserves healthier equity coverage.
| Symbol | ADP | OTIS |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 0.94 |
| Quick Ratio (TTM) | 1.02 | 0.87 |
| Debt-to-Equity Ratio (TTM) | 0.73 | -1.70 |
| Debt-to-Assets Ratio (TTM) | 0.08 | 0.78 |
| Interest Coverage Ratio (TTM) | 7.90 | 15.66 |