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ADP vs. PAYC: Automatic Data Processing vs. Paycom Software Stock Comparison

How do Automatic Data Processing (ADP) and Paycom Software (PAYC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Automatic Data Processing (ADP) and Paycom Software (PAYC) are both classified in the Human Resource & Employment Services sub-industry within the broader Professional Services industry, placing them in the closest GICS peer bucket.

Company profile comparison for Automatic Data Processing (ADP) and Paycom Software (PAYC)
Profile ItemADPPAYC
NameAutomatic Data Processing Inc.Paycom Software, Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCommercial & Professional ServicesCommercial & Professional Services
GICS IndustryProfessional ServicesProfessional Services
GICS Sub-IndustryHuman Resource & Employment ServicesHuman Resource & Employment Services
Market Capitalization119.75 billion USD10.69 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateMarch 17, 1980April 15, 2014
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ADP
PAYC
GSPC
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Automatic Data Processing (ADP) and Paycom Software (PAYC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Automatic Data Processing (ADP) and Paycom Software (PAYC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
Total Return (1Y)22.40%49.84%
Total Return (3Y, Annualized)12.77%13.71%
Total Return (5Y, Annualized)8.08%-13.38%

Risk Profile

Drawdown History

ADP
PAYC
GSPC
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Automatic Data Processing (ADP) and Paycom Software (PAYC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
Volatility (1Y, Annualized)28.04%47.19%
Beta (5Y)0.760.75
Max Drawdown (5Y)-40.78%-77.09%
Avg. Volume (3M)2.16M702.61K

Risk-Adjusted Performance

Risk-Return Positioning

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ADP and PAYC are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
Sharpe Ratio (1Y)0.650.97
Sortino Ratio (1Y)1.021.66

Profitability

ROE (TTM)

Both companies show strong equity returns, but Automatic Data Processing (ADP) at 78.94% is the standout with ROE above its industry range; Paycom Software (PAYC) at 42.22% also sits in the top quartile.

ADP

Commercial & Professional Services industry group

78.94%

ADP
78.94%
Max
47.06%
Q3
25.43%
Median
14.11%
Q1
3.92%
Min
-20.15%

PAYC

Commercial & Professional Services industry group

42.22%

Max
47.06%
PAYC
42.22%
Q3
25.43%
Median
14.11%
Q1
3.92%
Min
-20.15%
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their ROE against the Commercial & Professional Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Automatic Data Processing (ADP) at 20.33% and Paycom Software (PAYC) at 23.28% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

ADP

Commercial & Professional Services industry group

20.33%

Max
23.28%
ADP
20.33%
Q3
11.35%
Median
5.65%
Q1
0.87%
Min
-8.60%

PAYC

Commercial & Professional Services industry group

23.28%

PAYC
23.28%
Max
23.28%
Q3
11.35%
Median
5.65%
Q1
0.87%
Min
-8.60%
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their net margin against the Commercial & Professional Services industry group benchmark.

Operating Margin (TTM)

Both Automatic Data Processing (ADP) at 26.73% and Paycom Software (PAYC) at 38.03% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

ADP

Commercial & Professional Services industry group

26.73%

Max
38.50%
ADP
26.73%
Q3
18.84%
Median
10.40%
Q1
5.59%
Min
-12.00%

PAYC

Commercial & Professional Services industry group

38.03%

Max
38.50%
PAYC
38.03%
Q3
18.84%
Median
10.40%
Q1
5.59%
Min
-12.00%
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their operating margin against the Commercial & Professional Services industry group benchmark.

Profitability Metrics

Profitability metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
ROE (TTM)78.94%42.22%
ROA (TTM)6.32%8.98%
Net Margin (TTM)20.33%23.28%
Operating Margin (TTM)26.73%38.03%
Gross Margin (TTM)48.83%88.39%

Growth

Revenue Growth

Both Automatic Data Processing (ADP) at 6.74% and Paycom Software (PAYC) at 8.95% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Automatic Data Processing (ADP) at 9.62% and Paycom Software (PAYC) at -9.42% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
Revenue Growth (YoY)6.74%8.95%
Revenue Growth (3Y CAGR)6.81%14.27%
EPS Growth (YoY)9.62%-9.42%
EPS Growth (3Y CAGR)10.04%18.63%

Financial Strength

Current Ratio (MRQ)

Both Automatic Data Processing (ADP) at 1.03 and Paycom Software (PAYC) at 1.06 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

ADP

Commercial & Professional Services industry group

1.03

Max
3.63
Q3
2.14
Median
1.55
Q1
1.09
ADP
1.03
Min
0.45

PAYC

Commercial & Professional Services industry group

1.06

Max
3.63
Q3
2.14
Median
1.55
Q1
1.09
PAYC
1.06
Min
0.45
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their current ratio against the Commercial & Professional Services industry group benchmark.

Debt / Equity (MRQ)

Both Automatic Data Processing (ADP) at 1.10 and Paycom Software (PAYC) at 1.16 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

ADP

Commercial & Professional Services industry group

1.10

Max
2.37
Q3
1.25
ADP
1.10
Median
0.88
Q1
0.35
Min
0.00

PAYC

Commercial & Professional Services industry group

1.16

Max
2.37
Q3
1.25
PAYC
1.16
Median
0.88
Q1
0.35
Min
0.00
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their debt-to-equity ratio against the Commercial & Professional Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
Current Ratio (MRQ)1.031.06
Debt / Equity (MRQ)1.101.16
Net Debt / EBITDA0.350.75

Dividends

Dividend Yield (TTM)

Automatic Data Processing (ADP) at 2.21% delivers top-quartile income for its industry, while Paycom Software (PAYC) at 0.60% pays a more typical yield — both are credible income propositions, ADP the richer one.

ADP

Commercial & Professional Services industry group

2.21%

Max
4.33%
ADP
2.21%
Q3
1.80%
Median
0.60%
Q1
0.00%
Min
0.00%

PAYC

Commercial & Professional Services industry group

0.60%

Max
4.33%
Q3
1.80%
Median
0.60%
PAYC
0.60%
Q1
0.00%
Min
0.00%
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their dividend yield against the Commercial & Professional Services industry group benchmark.

Dividend Payout Ratio (TTM)

Paycom Software (PAYC) at 14.34% pays out a band-typical share of earnings, while Automatic Data Processing (ADP) at 60.28% distributes more than its industry norm — less retained, thinner cover.

ADP

Commercial & Professional Services industry group

60.28%

Max
99.58%
ADP
60.28%
Q3
41.99%
Median
17.27%
Q1
0.00%
Min
-17.94%

PAYC

Commercial & Professional Services industry group

14.34%

Max
99.58%
Q3
41.99%
Median
17.27%
PAYC
14.34%
Q1
0.00%
Min
-17.94%
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their payout ratio against the Commercial & Professional Services industry group benchmark.

Dividend Metrics

Dividend metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
Dividend Yield (TTM)2.21%0.60%
Dividend Payout Ratio (TTM)60.28%14.34%

Valuation

P/E Ratio (TTM)

Both Automatic Data Processing (ADP) at 26.89 and Paycom Software (PAYC) at 22.69 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

ADP

Commercial & Professional Services industry group

26.89

Max
49.47
Q3
33.76
ADP
26.89
Median
24.16
Q1
16.01
Min
1.89

PAYC

Commercial & Professional Services industry group

22.69

Max
49.47
Q3
33.76
Median
24.16
PAYC
22.69
Q1
16.01
Min
1.89
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their P/E ratio against the Commercial & Professional Services industry group benchmark.

P/S Ratio (TTM)

Both Automatic Data Processing (ADP) at 5.38 and Paycom Software (PAYC) at 4.88 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

ADP

Commercial & Professional Services industry group

5.38

Max
7.17
ADP
5.38
Q3
3.35
Median
1.33
Q1
0.69
Min
0.11

PAYC

Commercial & Professional Services industry group

4.88

Max
7.17
PAYC
4.88
Q3
3.35
Median
1.33
Q1
0.69
Min
0.11
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their P/S ratio against the Commercial & Professional Services industry group benchmark.

P/B Ratio (MRQ)

Measured against book value, both Automatic Data Processing (ADP) at 23.57 and Paycom Software (PAYC) at 14.62 look expensive — each P/B ratio sits above its industry’s benchmark range.

ADP

Commercial & Professional Services industry group

23.57

ADP
23.57
Max
11.25
Q3
6.08
Median
2.92
Q1
1.55
Min
-2.78

PAYC

Commercial & Professional Services industry group

14.62

PAYC
14.62
Max
11.25
Q3
6.08
Median
2.92
Q1
1.55
Min
-2.78
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Automatic Data Processing (ADP) vs. Paycom Software (PAYC): A comparison of their P/B ratio against the Commercial & Professional Services industry group benchmark.

Valuation Metrics

Valuation metrics for Automatic Data Processing (ADP) and Paycom Software (PAYC)
MetricADPPAYC
P/E Ratio (TTM)26.8922.69
P/S Ratio (TTM)5.384.88
P/B Ratio (MRQ)23.5714.62
Free Cash Flow Yield (TTM)5.40%5.69%