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

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

Company Profile

SymbolADPTDG
Company NameAutomatic Data Processing, Inc.TransDigm Group Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryProfessional ServicesAerospace & Defense
Market Capitalization125.17 billion USD79.01 billion USD
ExchangeNasdaqGSNYSE
Listing DateMarch 17, 1980March 15, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ADP and TDG 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. TDG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolADPTDG
5-Day Price Return0.25%-0.75%
13-Week Price Return-4.27%-2.63%
26-Week Price Return-0.30%4.96%
52-Week Price Return15.76%7.18%
Month-to-Date Return-1.22%-12.83%
Year-to-Date Return4.44%10.64%
10-Day Avg. Volume1.40M0.40M
3-Month Avg. Volume1.62M0.31M
3-Month Volatility17.03%29.15%
Beta0.861.04

Profitability

Return on Equity (TTM)

ADP

72.62%

Professional Services Industry

Max
52.17%
Q3
30.06%
Median
22.21%
Q1
11.67%
Min
-13.44%

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.

TDG

37.11%

Aerospace & Defense Industry

Max
43.89%
Q3
22.42%
Median
12.50%
Q1
5.21%
Min
-6.24%

In the upper quartile for the Aerospace & Defense industry, TDG’s Return on Equity of 37.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ADP vs. TDG: A comparison of their Return on Equity (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

ADP

19.84%

Professional Services Industry

Max
26.06%
Q3
13.34%
Median
7.88%
Q1
3.50%
Min
-2.93%

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.

TDG

22.52%

Aerospace & Defense Industry

Max
14.54%
Q3
8.08%
Median
6.17%
Q1
2.49%
Min
-1.63%

TDG’s Net Profit Margin of 22.52% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ADP vs. TDG: A comparison of their Net Profit Margin (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

ADP

26.32%

Professional Services Industry

Max
35.84%
Q3
19.38%
Median
12.54%
Q1
7.36%
Min
-5.21%

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.

TDG

45.94%

Aerospace & Defense Industry

Max
16.63%
Q3
10.38%
Median
8.29%
Q1
6.21%
Min
0.95%

TDG’s Operating Profit Margin of 45.94% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

ADP vs. TDG: A comparison of their Operating Profit Margin (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolADPTDG
Return on Equity (TTM)72.62%37.11%
Return on Assets (TTM)7.30%8.43%
Net Profit Margin (TTM)19.84%22.52%
Operating Profit Margin (TTM)26.32%45.94%
Gross Profit Margin (TTM)47.37%60.12%

Financial Strength

Current Ratio (MRQ)

ADP

1.05

Professional Services Industry

Max
2.45
Q3
1.65
Median
1.26
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.

TDG

3.13

Aerospace & Defense Industry

Max
3.09
Q3
1.98
Median
1.23
Q1
1.03
Min
0.02

TDG’s Current Ratio of 3.13 is exceptionally high, placing it well outside the typical range for the Aerospace & Defense 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. TDG: A comparison of their Current Ratio (MRQ) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ADP

1.41

Professional Services Industry

Max
2.63
Q3
1.44
Median
0.91
Q1
0.49
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.

TDG

5.41

Aerospace & Defense Industry

Max
1.70
Q3
1.04
Median
0.68
Q1
0.41
Min
0.00

With a Debt-to-Equity Ratio of 5.41, TDG operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

ADP vs. TDG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

ADP

39.45

Professional Services Industry

Max
39.67
Q3
20.05
Median
11.07
Q1
5.36
Min
-2.22

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.

TDG

2.72

Aerospace & Defense Industry

Max
36.57
Q3
19.90
Median
7.04
Q1
2.40
Min
-7.63

TDG’s Interest Coverage Ratio of 2.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

ADP vs. TDG: A comparison of their Interest Coverage Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolADPTDG
Current Ratio (MRQ)1.053.13
Quick Ratio (MRQ)1.052.07
Debt-to-Equity Ratio (MRQ)1.415.41
Interest Coverage Ratio (TTM)39.452.72

Growth

Revenue Growth

ADP vs. TDG: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ADP vs. TDG: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ADP

1.92%

Professional Services Industry

Max
5.28%
Q3
2.51%
Median
1.63%
Q1
0.62%
Min
0.00%

ADP’s Dividend Yield of 1.92% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.

TDG

5.58%

Aerospace & Defense Industry

Max
2.03%
Q3
1.22%
Median
0.43%
Q1
0.00%
Min
0.00%

TDG’s Dividend Yield of 5.58% is exceptionally high, placing it well above the typical range for the Aerospace & Defense 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.

ADP vs. TDG: A comparison of their Dividend Yield (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

ADP

58.80%

Professional Services Industry

Max
109.23%
Q3
64.39%
Median
47.00%
Q1
20.35%
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.

TDG

891.68%

Aerospace & Defense Industry

Max
83.87%
Q3
49.90%
Median
16.48%
Q1
0.00%
Min
0.00%

At 891.68%, TDG’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Aerospace & Defense industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

ADP vs. TDG: A comparison of their Dividend Payout Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolADPTDG
Dividend Yield (TTM)1.92%5.58%
Dividend Payout Ratio (TTM)58.80%891.68%

Valuation

Price-to-Earnings Ratio (TTM)

ADP

30.59

Professional Services Industry

Max
49.59
Q3
36.59
Median
28.13
Q1
18.55
Min
10.07

ADP’s P/E Ratio of 30.59 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.

TDG

40.76

Aerospace & Defense Industry

Max
65.97
Q3
54.11
Median
34.53
Q1
23.66
Min
0.00

TDG’s P/E Ratio of 40.76 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ADP vs. TDG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

ADP

6.07

Professional Services Industry

Max
9.54
Q3
5.11
Median
2.10
Q1
0.75
Min
0.11

ADP’s P/S Ratio of 6.07 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.

TDG

9.18

Aerospace & Defense Industry

Max
8.07
Q3
4.49
Median
2.42
Q1
1.39
Min
0.00

With a P/S Ratio of 9.18, TDG trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ADP vs. TDG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

ADP

20.23

Professional Services Industry

Max
13.75
Q3
8.87
Median
4.35
Q1
2.43
Min
0.54

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.

TDG

10.13

Aerospace & Defense Industry

Max
13.67
Q3
7.92
Median
4.65
Q1
2.68
Min
0.82

TDG’s P/B Ratio of 10.13 is in the upper tier for the Aerospace & Defense 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.

ADP vs. TDG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolADPTDG
Price-to-Earnings Ratio (TTM)30.5940.76
Price-to-Sales Ratio (TTM)6.079.18
Price-to-Book Ratio (MRQ)20.2310.13
Price-to-Free Cash Flow Ratio (TTM)28.4141.32