ADP vs. POOL: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and POOL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADP | POOL |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Pool Corporation |
| Country | United States | United States |
| GICS Sector | Industrials | Consumer Discretionary |
| GICS Industry | Professional Services | Distributors |
| Market Capitalization | 102.27 billion USD | 9.08 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 17, 1980 | October 13, 1995 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADP and POOL 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.
Historical Performance at a Glance
| Symbol | ADP | POOL |
|---|---|---|
| 5-Day Price Return | -0.38% | -2.63% |
| 13-Week Price Return | -16.14% | -24.69% |
| 26-Week Price Return | -17.88% | -22.79% |
| 52-Week Price Return | -17.69% | -31.00% |
| Month-to-Date Return | -2.77% | -9.26% |
| Year-to-Date Return | -13.54% | -28.93% |
| 10-Day Avg. Volume | 2.15M | 0.98M |
| 3-Month Avg. Volume | 1.76M | 0.61M |
| 3-Month Volatility | 18.71% | 29.81% |
| Beta | 0.88 | 1.23 |
Profitability
Return on Equity (TTM)
ADP
70.42%
Professional Services Industry
- Max
- 50.82%
- Q3
- 32.98%
- Median
- 21.73%
- Q1
- 12.35%
- Min
- -10.69%
ADP’s Return on Equity of 70.42% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
POOL
31.76%
Distributors Industry
- Max
- 35.43%
- Q3
- 28.24%
- Median
- 14.44%
- Q1
- 11.19%
- Min
- 11.04%
In the upper quartile for the Distributors industry, POOL’s Return on Equity of 31.76% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
ADP
19.79%
Professional Services Industry
- Max
- 27.86%
- Q3
- 14.27%
- Median
- 7.71%
- Q1
- 4.47%
- Min
- -9.49%
A Net Profit Margin of 19.79% places ADP in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
POOL
7.78%
Distributors Industry
- Max
- 5.68%
- Q3
- 5.68%
- Median
- 5.33%
- Q1
- 4.85%
- Min
- 4.81%
POOL’s Net Profit Margin of 7.78% is exceptionally high, placing it well beyond the typical range for the Distributors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
ADP
26.18%
Professional Services Industry
- Max
- 35.71%
- Q3
- 19.52%
- Median
- 12.30%
- Q1
- 7.86%
- Min
- -1.29%
An Operating Profit Margin of 26.18% places ADP in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
POOL
11.12%
Distributors Industry
- Max
- 8.19%
- Q3
- 7.61%
- Median
- 5.57%
- Q1
- 5.27%
- Min
- 4.94%
POOL’s Operating Profit Margin of 11.12% is exceptionally high, placing it well above the typical range for the Distributors industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ADP | POOL |
|---|---|---|
| Return on Equity (TTM) | 70.42% | 31.76% |
| Return on Assets (TTM) | 7.25% | 11.57% |
| Net Profit Margin (TTM) | 19.79% | 7.78% |
| Operating Profit Margin (TTM) | 26.18% | 11.12% |
| Gross Profit Margin (TTM) | 47.26% | 29.59% |
Financial Strength
Current Ratio (MRQ)
ADP
1.05
Professional Services Industry
- Max
- 2.45
- Q3
- 1.69
- Median
- 1.33
- Q1
- 1.10
- Min
- 0.47
ADP’s Current Ratio of 1.05 falls into the lower quartile for the Professional Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
POOL
2.57
Distributors Industry
- Max
- 1.60
- Q3
- 1.50
- Median
- 1.21
- Q1
- 1.15
- Min
- 1.09
POOL’s Current Ratio of 2.57 is exceptionally high, placing it well outside the typical range for the Distributors 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.
Debt-to-Equity Ratio (MRQ)
ADP
1.44
Professional Services Industry
- Max
- 2.55
- Q3
- 1.54
- Median
- 0.94
- Q1
- 0.45
- Min
- 0.00
ADP’s Debt-to-Equity Ratio of 1.44 is typical for the Professional Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
POOL
0.77
Distributors Industry
- Max
- 1.19
- Q3
- 0.94
- Median
- 0.70
- Q1
- 0.51
- Min
- 0.46
POOL’s Debt-to-Equity Ratio of 0.77 is typical for the Distributors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
ADP
39.45
Professional Services Industry
- Max
- 39.45
- Q3
- 20.05
- Median
- 11.35
- Q1
- 5.46
- Min
- -1.21
ADP’s Interest Coverage Ratio of 39.45 is in the upper quartile for the Professional Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
POOL
12.28
Distributors Industry
- Max
- 13.15
- Q3
- 10.84
- Median
- 5.59
- Q1
- 4.01
- Min
- 3.80
POOL’s Interest Coverage Ratio of 12.28 is in the upper quartile for the Distributors industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADP | POOL |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 2.57 |
| Quick Ratio (MRQ) | 1.05 | 0.80 |
| Debt-to-Equity Ratio (MRQ) | 1.44 | 0.77 |
| Interest Coverage Ratio (TTM) | 39.45 | 12.28 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ADP
2.40%
Professional Services Industry
- Max
- 4.35%
- Q3
- 2.86%
- Median
- 1.57%
- Q1
- 0.72%
- Min
- 0.00%
ADP’s Dividend Yield of 2.40% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
POOL
2.04%
Distributors Industry
- Max
- 50.93%
- Q3
- 39.24%
- Median
- 4.08%
- Q1
- 3.39%
- Min
- 2.04%
POOL’s Dividend Yield of 2.04% is in the lower quartile for the Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
ADP
59.30%
Professional Services Industry
- Max
- 99.60%
- Q3
- 69.06%
- Median
- 43.41%
- Q1
- 19.44%
- Min
- 0.00%
ADP’s Dividend Payout Ratio of 59.30% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
POOL
44.68%
Distributors Industry
- Max
- 903.92%
- Q3
- 695.38%
- Median
- 57.27%
- Q1
- 44.70%
- Min
- 26.53%
POOL’s Dividend Payout Ratio of 44.68% is in the lower quartile for the Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | ADP | POOL |
|---|---|---|
| Dividend Yield (TTM) | 2.40% | 2.04% |
| Dividend Payout Ratio (TTM) | 59.30% | 44.68% |
Valuation
Price-to-Earnings Ratio (TTM)
ADP
24.68
Professional Services Industry
- Max
- 52.91
- Q3
- 32.20
- Median
- 25.00
- Q1
- 17.95
- Min
- 6.60
ADP’s P/E Ratio of 24.68 is within the middle range for the Professional Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
POOL
21.90
Distributors Industry
- Max
- 21.90
- Q3
- 20.83
- Median
- 17.75
- Q1
- 12.85
- Min
- 6.38
A P/E Ratio of 21.90 places POOL in the upper quartile for the Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
ADP
4.88
Professional Services Industry
- Max
- 8.52
- Q3
- 4.25
- Median
- 2.07
- Q1
- 0.84
- Min
- 0.18
ADP’s P/S Ratio of 4.88 is in the upper echelon for the Professional Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
POOL
1.70
Distributors Industry
- Max
- 1.01
- Q3
- 1.01
- Median
- 0.87
- Q1
- 0.60
- Min
- 0.31
With a P/S Ratio of 1.70, POOL trades at a valuation that eclipses even the highest in the Distributors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
ADP
18.65
Professional Services Industry
- Max
- 18.65
- Q3
- 9.28
- Median
- 6.16
- Q1
- 2.96
- Min
- 0.53
ADP’s P/B Ratio of 18.65 is in the upper tier for the Professional Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
POOL
8.39
Distributors Industry
- Max
- 4.03
- Q3
- 3.80
- Median
- 3.12
- Q1
- 2.75
- Min
- 1.20
At 8.39, POOL’s P/B Ratio is at an extreme premium to the Distributors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ADP | POOL |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.68 | 21.90 |
| Price-to-Sales Ratio (TTM) | 4.88 | 1.70 |
| Price-to-Book Ratio (MRQ) | 18.65 | 8.39 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.25 | 20.63 |