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ADP vs. PONY: A Head-to-Head Stock Comparison

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Here’s a clear look at ADP and PONY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ADP’s market capitalization of 125.51 billion USD is substantially larger than PONY’s 4.74 billion USD, indicating a significant difference in their market valuations.

PONY carries a higher beta at 4.02, indicating it’s more sensitive to market moves, while ADP (beta: 0.80) exhibits greater stability.

SymbolADPPONY
Company NameAutomatic Data Processing, Inc.Pony AI Inc. American Depositary Shares
CountryUSCN
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesRental & Leasing Services
CEOMaria BlackJun Peng
Price309.2 USD12.86 USD
Market Cap125.51 billion USD4.74 billion USD
Beta0.804.02
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980--
ADRNoNo

Historical Performance

This chart compares the performance of ADP and PONY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ADP vs. PONY: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ADP

76.78%

Staffing & Employment Services Industry

Max
76.78%
Q3
46.63%
Median
19.55%
Q1
6.99%
Min
-1.64%

In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Equity of 76.78% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

PONY

-66.89%

Rental & Leasing Services Industry

Max
33.37%
Q3
21.32%
Median
10.48%
Q1
2.04%
Min
-2.71%

PONY has a negative Return on Equity of -66.89%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

ADP vs. PONY: A comparison of their ROE against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Return on Invested Capital

ADP

23.22%

Staffing & Employment Services Industry

Max
23.22%
Q3
18.16%
Median
9.93%
Q1
4.57%
Min
-1.94%

In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Invested Capital of 23.22% signifies a highly effective use of its capital to generate profits when compared to its peers.

PONY

-28.16%

Rental & Leasing Services Industry

Max
19.57%
Q3
13.92%
Median
5.28%
Q1
3.34%
Min
-10.86%

PONY has a negative Return on Invested Capital of -28.16%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

ADP vs. PONY: A comparison of their ROIC against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Net Profit Margin

ADP

19.79%

Staffing & Employment Services Industry

Max
30.46%
Q3
17.07%
Median
3.53%
Q1
0.98%
Min
-4.15%

A Net Profit Margin of 19.79% places ADP in the upper quartile for the Staffing & Employment Services industry, signifying strong profitability and more effective cost management than most of its peers.

PONY

-475.58%

Rental & Leasing Services Industry

Max
26.77%
Q3
17.31%
Median
5.12%
Q1
-0.51%
Min
-19.03%

PONY has a negative Net Profit Margin of -475.58%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ADP vs. PONY: A comparison of their Net Profit Margin against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Operating Profit Margin

ADP

17.38%

Staffing & Employment Services Industry

Max
19.92%
Q3
12.35%
Median
4.95%
Q1
2.59%
Min
-2.06%

An Operating Profit Margin of 17.38% places ADP in the upper quartile for the Staffing & Employment Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

PONY

-508.16%

Rental & Leasing Services Industry

Max
53.21%
Q3
29.93%
Median
16.64%
Q1
8.88%
Min
-12.57%

PONY has a negative Operating Profit Margin of -508.16%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ADP vs. PONY: A comparison of their Operating Margin against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Profitability at a Glance

SymbolADPPONY
Return on Equity (TTM)76.78%-66.89%
Return on Assets (TTM)7.08%-24.68%
Return on Invested Capital (TTM)23.22%-28.16%
Net Profit Margin (TTM)19.79%-475.58%
Operating Profit Margin (TTM)17.38%-508.16%
Gross Profit Margin (TTM)47.09%20.02%

Financial Strength

Current Ratio

ADP

1.02

Staffing & Employment Services Industry

Max
2.06
Q3
2.01
Median
1.65
Q1
1.15
Min
1.02

ADP’s Current Ratio of 1.02 falls into the lower quartile for the Staffing & Employment Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

PONY

11.77

Rental & Leasing Services Industry

Max
7.05
Q3
3.95
Median
1.87
Q1
0.85
Min
0.64

PONY’s Current Ratio of 11.77 is exceptionally high, placing it well outside the typical range for the Rental & Leasing Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

ADP vs. PONY: A comparison of their Current Ratio against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Debt-to-Equity Ratio

ADP

0.73

Staffing & Employment Services Industry

Max
0.73
Q3
0.70
Median
0.22
Q1
0.11
Min
0.02

ADP’s leverage is in the upper quartile of the Staffing & Employment Services industry, with a Debt-to-Equity Ratio of 0.73. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

PONY

0.01

Rental & Leasing Services Industry

Max
3.95
Q3
3.50
Median
2.49
Q1
0.92
Min
0.00

Falling into the lower quartile for the Rental & Leasing Services industry, PONY’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ADP vs. PONY: A comparison of their D/E Ratio against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Interest Coverage Ratio

ADP

7.90

Staffing & Employment Services Industry

Max
7.90
Q3
7.90
Median
2.91
Q1
-0.32
Min
-1.17

ADP’s Interest Coverage Ratio of 7.90 is positioned comfortably within the norm for the Staffing & Employment Services industry, indicating a standard and healthy capacity to cover its interest payments.

PONY

-48.96

Rental & Leasing Services Industry

Max
6.53
Q3
5.33
Median
2.35
Q1
1.41
Min
-1.09

PONY has a negative Interest Coverage Ratio of -48.96. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

ADP vs. PONY: A comparison of their Interest Coverage against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Financial Strength at a Glance

SymbolADPPONY
Current Ratio (TTM)1.0211.77
Quick Ratio (TTM)1.0211.77
Debt-to-Equity Ratio (TTM)0.730.01
Debt-to-Asset Ratio (TTM)0.080.01
Net Debt-to-EBITDA Ratio (TTM)0.261.88
Interest Coverage Ratio (TTM)7.90-48.96

Growth

The following charts compare key year-over-year (YoY) growth metrics for ADP and PONY. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ADP vs. PONY: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ADP vs. PONY: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ADP vs. PONY: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ADP

1.95%

Staffing & Employment Services Industry

Max
5.58%
Q3
3.50%
Median
2.08%
Q1
0.83%
Min
0.00%

ADP’s Dividend Yield of 1.95% is consistent with its peers in the Staffing & Employment Services industry, providing a dividend return that is standard for its sector.

PONY

0.00%

Rental & Leasing Services Industry

Max
2.29%
Q3
1.60%
Median
0.72%
Q1
0.00%
Min
0.00%

PONY currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ADP vs. PONY: A comparison of their Dividend Yield against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Dividend Payout Ratio

ADP

58.73%

Staffing & Employment Services Industry

Max
161.25%
Q3
109.23%
Median
58.73%
Q1
15.69%
Min
0.00%

ADP’s Dividend Payout Ratio of 58.73% is within the typical range for the Staffing & Employment Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

PONY

0.00%

Rental & Leasing Services Industry

Max
260.58%
Q3
29.91%
Median
17.33%
Q1
6.80%
Min
0.00%

PONY has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ADP vs. PONY: A comparison of their Payout Ratio against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Dividend at a Glance

SymbolADPPONY
Dividend Yield (TTM)1.95%0.00%
Dividend Payout Ratio (TTM)58.73%0.00%

Valuation

Price-to-Earnings Ratio

ADP

31.47

Staffing & Employment Services Industry

Max
35.74
Q3
30.98
Median
20.51
Q1
15.65
Min
7.85

A P/E Ratio of 31.47 places ADP in the upper quartile for the Staffing & Employment Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

PONY

-9.04

Rental & Leasing Services Industry

Max
32.56
Q3
29.28
Median
17.35
Q1
9.97
Min
5.76

PONY has a negative P/E Ratio of -9.04. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

ADP vs. PONY: A comparison of their P/E Ratio against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Forward P/E to Growth Ratio

ADP

3.56

Staffing & Employment Services Industry

Max
3.23
Q3
1.89
Median
1.18
Q1
1.00
Min
0.39

ADP’s Forward PEG Ratio of 3.56 is exceptionally high for the Staffing & Employment Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

PONY

-0.33

Rental & Leasing Services Industry

Max
2.86
Q3
2.33
Median
1.39
Q1
0.91
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Rental & Leasing Services industry.

ADP vs. PONY: A comparison of their Forward PEG Ratio against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Price-to-Sales Ratio

ADP

6.21

Staffing & Employment Services Industry

Max
3.70
Q3
2.09
Median
0.86
Q1
0.59
Min
0.09

With a P/S Ratio of 6.21, ADP trades at a valuation that eclipses even the highest in the Staffing & Employment Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PONY

86.88

Rental & Leasing Services Industry

Max
6.35
Q3
3.16
Median
2.03
Q1
0.60
Min
0.25

With a P/S Ratio of 86.88, PONY trades at a valuation that eclipses even the highest in the Rental & Leasing Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ADP vs. PONY: A comparison of their P/S Ratio against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Price-to-Book Ratio

ADP

21.49

Staffing & Employment Services Industry

Max
21.09
Q3
12.56
Median
3.17
Q1
1.96
Min
0.33

The P/B Ratio is often not a primary valuation metric for the Staffing & Employment Services industry.

PONY

2.47

Rental & Leasing Services Industry

Max
2.76
Q3
2.65
Median
2.02
Q1
1.37
Min
0.69

PONY’s P/B Ratio of 2.47 is within the conventional range for the Rental & Leasing Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ADP vs. PONY: A comparison of their P/B Ratio against their respective Staffing & Employment Services and Rental & Leasing Services industry benchmarks.

Valuation at a Glance

SymbolADPPONY
Price-to-Earnings Ratio (P/E, TTM)31.47-9.04
Forward PEG Ratio (TTM)3.56-0.33
Price-to-Sales Ratio (P/S, TTM)6.2186.88
Price-to-Book Ratio (P/B, TTM)21.492.47
Price-to-Free Cash Flow Ratio (P/FCF, TTM)27.77-53.27
EV-to-EBITDA (TTM)20.57-15.21
EV-to-Sales (TTM)6.2977.30