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

Updated

Here’s a clear look at ADP and RKLB, 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 RKLB’s 11.61 billion USD by roughly 11.28×.

RKLB carries a higher beta at 2.05, indicating it’s more sensitive to market moves, while ADP remains steadier at 0.78.

SymbolADPRKLB
Company NameAutomatic Data Processing, Inc.Rocket Lab USA, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesAerospace & Defense
CEOMs. Maria BlackMr. Peter Beck
Price322.63 USD25.17 USD
Market Cap130.96 billion USD11.61 billion USD
Beta0.782.05
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980November 24, 2020
ADRNoNo

Performance Comparison

This chart compares the performance of ADP and RKLB 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 RKLB based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • RKLB shows a negative P/E of -61.62, highlighting a year of losses, whereas ADP at 32.83 trades on solid profitability.
  • RKLB reports a negative Price-to-Free Cash Flow ratio of -65.57, showing a cash flow shortfall that could threaten its operational sustainability, while ADP at 28.97 maintains positive cash flow.
SymbolADPRKLB
Price-to-Earnings Ratio (P/E, TTM)32.83-61.62
Forward PEG Ratio (TTM)3.727.60
Price-to-Sales Ratio (P/S, TTM)6.4824.92
Price-to-Book Ratio (P/B, TTM)22.4229.51
Price-to-Free Cash Flow Ratio (P/FCF, TTM)28.97-65.57
EV-to-EBITDA (TTM)21.45-70.51
EV-to-Sales (TTM)6.5625.32
EV-to-Free Cash Flow (TTM)29.32-66.63

Dividend Comparison

ADP delivers a 1.82% dividend yield, blending income with growth, whereas RKLB appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

SymbolADPRKLB
Dividend Yield (TTM)1.82%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ADP and RKLB, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • ADP meets its interest obligations (ratio 7.90). In stark contrast, RKLB’s negative ratio (-36.50) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
SymbolADPRKLB
Current Ratio (TTM)1.022.08
Quick Ratio (TTM)1.021.72
Debt-to-Equity Ratio (TTM)0.731.14
Debt-to-Assets Ratio (TTM)0.080.39
Interest Coverage Ratio (TTM)7.90-36.50