ADP vs. SWK: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADP and SWK, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
ADP’s market capitalization of 131.67 billion USD is substantially larger than SWK’s 9.92 billion USD, indicating a significant difference in their market valuations.
SWK carries a higher beta at 1.19, indicating it’s more sensitive to market moves, while ADP (beta: 0.78) exhibits greater stability.
| Symbol | ADP | SWK |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Stanley Black & Decker, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Manufacturing - Tools & Accessories |
| CEO | Ms. Maria Black | Mr. Donald Allan Jr. |
| Price | 324.37 USD | 64.135 USD |
| Market Cap | 131.67 billion USD | 9.92 billion USD |
| Beta | 0.78 | 1.19 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | March 17, 1980 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ADP and SWK over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
This section compares the market valuation of ADP and SWK. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- ADP’s Forward PEG ratio of 3.74 is very high. This suggests that investors have priced in a substantial amount of future earnings growth, potentially making the stock vulnerable if these high expectations are not met or if growth slows.
| Symbol | ADP | SWK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 33.01 | 27.12 |
| Forward PEG Ratio (TTM) | 3.74 | 1.04 |
| Price-to-Sales Ratio (P/S, TTM) | 6.52 | 0.65 |
| Price-to-Book Ratio (P/B, TTM) | 22.54 | 1.10 |
| EV-to-EBITDA (TTM) | 21.57 | 11.76 |
| EV-to-Sales (TTM) | 6.60 | 1.07 |
Dividend Comparison
SWK provides a dividend yield of 6.38%, which is significantly higher than ADP’s 1.81%, highlighting its commitment to more generous shareholder payouts.
| Symbol | ADP | SWK |
|---|---|---|
| Dividend Yield (TTM) | 1.81% | 6.38% |
Financial Strength Metrics Comparison
This section evaluates the financial strength of ADP and SWK. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.
- SWK’s quick ratio of 0.36 is low. This indicates that its readily available liquid assets, excluding inventory, might provide a thin cushion for its short-term obligations, highlighting potential constraints on its immediate debt-paying ability without selling inventory.
| Symbol | ADP | SWK |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.10 |
| Quick Ratio (TTM) | 1.02 | 0.36 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 0.76 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.30 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 4.61 |
| Interest Coverage Ratio (TTM) | 7.90 | 2.41 |