ADP vs. TDG: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADP and TDG, 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 TDG’s 79.08 billion USD by roughly 1.66×.
With betas of 0.78 for ADP and 1.09 for TDG, both show similar volatility profiles relative to the overall market.
| Symbol | ADP | TDG |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | TransDigm Group Incorporated |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Aerospace & Defense |
| CEO | Ms. Maria Black | Dr. Kevin M. Stein Ph.D. |
| Price | 322.63 USD | 1,407.98 USD |
| Market Cap | 130.96 billion USD | 79.08 billion USD |
| Beta | 0.78 | 1.09 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | March 15, 2006 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ADP and TDG 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 TDG based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- TDG carries a sub-zero price-to-book ratio of -14.42, indicating negative equity. In contrast, ADP (P/B 22.42) has positive book value.
| Symbol | ADP | TDG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.83 | 43.03 |
| Forward PEG Ratio (TTM) | 3.72 | 2.80 |
| Price-to-Sales Ratio (P/S, TTM) | 6.48 | 9.43 |
| Price-to-Book Ratio (P/B, TTM) | 22.42 | -14.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 28.97 | 41.60 |
| EV-to-EBITDA (TTM) | 21.45 | 23.99 |
| EV-to-Sales (TTM) | 6.56 | 12.13 |
| EV-to-Free Cash Flow (TTM) | 29.32 | 53.50 |
Dividend Comparison
TDG stands out with a 5.33% dividend yield—around 192% above ADP’s 1.82%—highlighting its emphasis on generous payouts.
| Symbol | ADP | TDG |
|---|---|---|
| Dividend Yield (TTM) | 1.82% | 5.33% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ADP and TDG, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- TDG has negative equity (debt-to-equity ratio -4.42), suggesting asset shortfalls, whereas ADP at 0.73 preserves healthier equity coverage.
- TDG carries a debt-to-assets ratio of 1.14, suggesting substantial asset funding via debt, while ADP at 0.08 opts for a more conservative financing structure.
| Symbol | ADP | TDG |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 3.09 |
| Quick Ratio (TTM) | 1.02 | 2.12 |
| Debt-to-Equity Ratio (TTM) | 0.73 | -4.42 |
| Debt-to-Assets Ratio (TTM) | 0.08 | 1.14 |
| Interest Coverage Ratio (TTM) | 7.90 | 2.73 |