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.
| Profile Item | ADP | PAYC |
|---|---|---|
| Name | Automatic Data Processing Inc. | Paycom Software, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Commercial & Professional Services | Commercial & Professional Services |
| GICS Industry | Professional Services | Professional Services |
| GICS Sub-Industry | Human Resource & Employment Services | Human Resource & Employment Services |
| Market Capitalization | 119.75 billion USD | 10.69 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | March 17, 1980 | April 15, 2014 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ADP | PAYC |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | ADP | PAYC |
|---|---|---|
| Volatility (1Y, Annualized) | 28.04% | 47.19% |
| Beta (5Y) | 0.76 | 0.75 |
| Max Drawdown (5Y) | -40.78% | -77.09% |
| Avg. Volume (3M) | 2.16M | 702.61K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ADP | PAYC |
|---|---|---|
| Sharpe Ratio (1Y) | 0.65 | 0.97 |
| Sortino Ratio (1Y) | 1.02 | 1.66 |
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%
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%
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%
Profitability Metrics
| Metric | ADP | PAYC |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | ADP | PAYC |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | ADP | PAYC |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 1.06 |
| Debt / Equity (MRQ) | 1.10 | 1.16 |
| Net Debt / EBITDA | 0.35 | 0.75 |
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%
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%
Dividend Metrics
| Metric | ADP | PAYC |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | ADP | PAYC |
|---|---|---|
| P/E Ratio (TTM) | 26.89 | 22.69 |
| P/S Ratio (TTM) | 5.38 | 4.88 |
| P/B Ratio (MRQ) | 23.57 | 14.62 |
| Free Cash Flow Yield (TTM) | 5.40% | 5.69% |