ADP vs. ROP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and ROP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADP | ROP |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Roper Technologies, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Information Technology |
| GICS Industry | Professional Services | Software |
| Market Capitalization | 118.01 billion USD | 53.80 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 17, 1980 | February 13, 1992 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADP and ROP 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 | ROP |
|---|---|---|
| 5-Day Price Return | -0.46% | -0.20% |
| 13-Week Price Return | -5.79% | -12.75% |
| 26-Week Price Return | -4.65% | -15.20% |
| 52-Week Price Return | 2.74% | -9.33% |
| Month-to-Date Return | -0.75% | 0.25% |
| Year-to-Date Return | -0.49% | -3.83% |
| 10-Day Avg. Volume | 2.19M | 0.85M |
| 3-Month Avg. Volume | 1.71M | 0.70M |
| 3-Month Volatility | 15.27% | 16.61% |
| Beta | 0.89 | 0.96 |
Profitability
Return on Equity (TTM)
ADP
72.62%
Professional Services Industry
- Max
- 68.01%
- Q3
- 35.32%
- Median
- 21.92%
- Q1
- 11.67%
- Min
- -20.25%
ADP’s Return on Equity of 72.62% 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.
ROP
8.08%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
ROP’s Return on Equity of 8.08% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ADP
19.84%
Professional Services Industry
- Max
- 31.75%
- Q3
- 15.50%
- Median
- 8.95%
- Q1
- 4.51%
- Min
- 0.35%
A Net Profit Margin of 19.84% places ADP in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
ROP
20.62%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 20.62% places ROP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
ADP
26.32%
Professional Services Industry
- Max
- 30.62%
- Q3
- 19.06%
- Median
- 13.60%
- Q1
- 8.60%
- Min
- -2.18%
An Operating Profit Margin of 26.32% 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.
ROP
28.06%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
An Operating Profit Margin of 28.06% places ROP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ADP | ROP |
|---|---|---|
| Return on Equity (TTM) | 72.62% | 8.08% |
| Return on Assets (TTM) | 7.30% | 4.83% |
| Net Profit Margin (TTM) | 19.84% | 20.62% |
| Operating Profit Margin (TTM) | 26.32% | 28.06% |
| Gross Profit Margin (TTM) | 47.37% | 68.87% |
Financial Strength
Current Ratio (MRQ)
ADP
1.05
Professional Services Industry
- Max
- 2.28
- Q3
- 1.75
- Median
- 1.34
- 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.
ROP
0.46
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
ROP’s Current Ratio of 0.46 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
ADP
1.41
Professional Services Industry
- Max
- 2.93
- Q3
- 1.45
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.00
ADP’s Debt-to-Equity Ratio of 1.41 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.
ROP
0.45
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
ROP’s Debt-to-Equity Ratio of 0.45 is typical for the Software 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
- 20.41
- Median
- 11.64
- 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.
ROP
80.97
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
ROP’s Interest Coverage Ratio of 80.97 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADP | ROP |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 0.46 |
| Quick Ratio (MRQ) | 1.05 | 0.43 |
| Debt-to-Equity Ratio (MRQ) | 1.41 | 0.45 |
| Interest Coverage Ratio (TTM) | 39.45 | 80.97 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ADP
2.04%
Professional Services Industry
- Max
- 4.83%
- Q3
- 2.44%
- Median
- 1.52%
- Q1
- 0.52%
- Min
- 0.00%
ADP’s Dividend Yield of 2.04% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
ROP
0.63%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ROP’s Dividend Yield of 0.63% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
ADP
58.80%
Professional Services Industry
- Max
- 128.51%
- Q3
- 69.03%
- Median
- 47.00%
- Q1
- 18.05%
- Min
- 0.00%
ADP’s Dividend Payout Ratio of 58.80% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
ROP
21.99%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 21.99%, ROP’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | ADP | ROP |
|---|---|---|
| Dividend Yield (TTM) | 2.04% | 0.63% |
| Dividend Payout Ratio (TTM) | 58.80% | 21.99% |
Valuation
Price-to-Earnings Ratio (TTM)
ADP
28.86
Professional Services Industry
- Max
- 52.60
- Q3
- 33.83
- Median
- 24.95
- Q1
- 17.59
- Min
- 7.96
ADP’s P/E Ratio of 28.86 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.
ROP
35.08
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
ROP’s P/E Ratio of 35.08 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
ADP
5.73
Professional Services Industry
- Max
- 8.27
- Q3
- 4.40
- Median
- 2.09
- Q1
- 0.99
- Min
- 0.17
ADP’s P/S Ratio of 5.73 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.
ROP
7.23
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
ROP’s P/S Ratio of 7.23 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ADP
20.23
Professional Services Industry
- Max
- 18.75
- Q3
- 9.53
- Median
- 5.88
- Q1
- 2.95
- Min
- 0.59
At 20.23, ADP’s P/B Ratio is at an extreme premium to the Professional Services 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.
ROP
3.10
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
ROP’s P/B Ratio of 3.10 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ADP | ROP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 28.86 | 35.08 |
| Price-to-Sales Ratio (TTM) | 5.73 | 7.23 |
| Price-to-Book Ratio (MRQ) | 20.23 | 3.10 |
| Price-to-Free Cash Flow Ratio (TTM) | 26.80 | 23.66 |