ADP vs. TNET: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and TNET, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ADP’s market capitalization of 125.51 billion USD is substantially larger than TNET’s 3.60 billion USD, indicating a significant difference in their market valuations.
With betas of 0.80 for ADP and 0.89 for TNET, both stocks show similar sensitivity to overall market movements.
| Symbol | ADP | TNET |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | TriNet Group, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Staffing & Employment Services |
| CEO | Maria Black | Michael Quinn Simonds |
| Price | 309.2 USD | 74.36 USD |
| Market Cap | 125.51 billion USD | 3.60 billion USD |
| Beta | 0.80 | 0.89 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | March 27, 2014 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADP and TNET 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.
Profitability
Return on Equity
ADP
76.78%
Staffing & Employment Services Industry
- Max
- 76.78%
- Q3
- 46.63%
- Median
- 19.55%
- Q1
- 6.99%
- Min
- -1.64%
In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Equity of 76.78% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TNET
185.04%
Staffing & Employment Services Industry
- Max
- 76.78%
- Q3
- 46.63%
- Median
- 19.55%
- Q1
- 6.99%
- Min
- -1.64%
TNET’s Return on Equity of 185.04% is exceptionally high, placing it well beyond the typical range for the Staffing & Employment Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
ADP
23.22%
Staffing & Employment Services Industry
- Max
- 23.22%
- Q3
- 18.16%
- Median
- 9.93%
- Q1
- 4.57%
- Min
- -1.94%
In the upper quartile for the Staffing & Employment Services industry, ADP’s Return on Invested Capital of 23.22% signifies a highly effective use of its capital to generate profits when compared to its peers.
TNET
18.62%
Staffing & Employment Services Industry
- Max
- 23.22%
- Q3
- 18.16%
- Median
- 9.93%
- Q1
- 4.57%
- Min
- -1.94%
In the upper quartile for the Staffing & Employment Services industry, TNET’s Return on Invested Capital of 18.62% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ADP
19.79%
Staffing & Employment Services Industry
- Max
- 30.46%
- Q3
- 17.07%
- Median
- 3.53%
- Q1
- 0.98%
- Min
- -4.15%
A Net Profit Margin of 19.79% places ADP in the upper quartile for the Staffing & Employment Services industry, signifying strong profitability and more effective cost management than most of its peers.
TNET
3.29%
Staffing & Employment Services Industry
- Max
- 30.46%
- Q3
- 17.07%
- Median
- 3.53%
- Q1
- 0.98%
- Min
- -4.15%
TNET’s Net Profit Margin of 3.29% is aligned with the median group of its peers in the Staffing & Employment Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ADP
17.38%
Staffing & Employment Services Industry
- Max
- 19.92%
- Q3
- 12.35%
- Median
- 4.95%
- Q1
- 2.59%
- Min
- -2.06%
An Operating Profit Margin of 17.38% places ADP in the upper quartile for the Staffing & Employment Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TNET
5.79%
Staffing & Employment Services Industry
- Max
- 19.92%
- Q3
- 12.35%
- Median
- 4.95%
- Q1
- 2.59%
- Min
- -2.06%
TNET’s Operating Profit Margin of 5.79% is around the midpoint for the Staffing & Employment Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADP | TNET |
|---|---|---|
| Return on Equity (TTM) | 76.78% | 185.04% |
| Return on Assets (TTM) | 7.08% | 4.42% |
| Return on Invested Capital (TTM) | 23.22% | 18.62% |
| Net Profit Margin (TTM) | 19.79% | 3.29% |
| Operating Profit Margin (TTM) | 17.38% | 5.79% |
| Gross Profit Margin (TTM) | 47.09% | 18.38% |
Financial Strength
Current Ratio
ADP
1.02
Staffing & Employment Services Industry
- Max
- 2.06
- Q3
- 2.01
- Median
- 1.65
- Q1
- 1.15
- Min
- 1.02
ADP’s Current Ratio of 1.02 falls into the lower quartile for the Staffing & Employment Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
TNET
1.08
Staffing & Employment Services Industry
- Max
- 2.06
- Q3
- 2.01
- Median
- 1.65
- Q1
- 1.15
- Min
- 1.02
TNET’s Current Ratio of 1.08 falls into the lower quartile for the Staffing & Employment Services 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
ADP
0.73
Staffing & Employment Services Industry
- Max
- 0.73
- Q3
- 0.70
- Median
- 0.22
- Q1
- 0.11
- Min
- 0.02
ADP’s leverage is in the upper quartile of the Staffing & Employment Services industry, with a Debt-to-Equity Ratio of 0.73. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
TNET
16.17
Staffing & Employment Services Industry
- Max
- 0.73
- Q3
- 0.70
- Median
- 0.22
- Q1
- 0.11
- Min
- 0.02
With a Debt-to-Equity Ratio of 16.17, TNET operates with exceptionally high leverage compared to the Staffing & Employment Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
ADP
7.90
Staffing & Employment Services Industry
- Max
- 7.90
- Q3
- 7.90
- Median
- 2.91
- Q1
- -0.32
- Min
- -1.17
ADP’s Interest Coverage Ratio of 7.90 is positioned comfortably within the norm for the Staffing & Employment Services industry, indicating a standard and healthy capacity to cover its interest payments.
TNET
4.90
Staffing & Employment Services Industry
- Max
- 7.90
- Q3
- 7.90
- Median
- 2.91
- Q1
- -0.32
- Min
- -1.17
TNET’s Interest Coverage Ratio of 4.90 is positioned comfortably within the norm for the Staffing & Employment Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ADP | TNET |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.08 |
| Quick Ratio (TTM) | 1.02 | 1.08 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 16.17 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.27 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 1.88 |
| Interest Coverage Ratio (TTM) | 7.90 | 4.90 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADP and TNET. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ADP
1.95%
Staffing & Employment Services Industry
- Max
- 5.58%
- Q3
- 3.50%
- Median
- 2.08%
- Q1
- 0.83%
- Min
- 0.00%
ADP’s Dividend Yield of 1.95% is consistent with its peers in the Staffing & Employment Services industry, providing a dividend return that is standard for its sector.
TNET
1.41%
Staffing & Employment Services Industry
- Max
- 5.58%
- Q3
- 3.50%
- Median
- 2.08%
- Q1
- 0.83%
- Min
- 0.00%
TNET’s Dividend Yield of 1.41% is consistent with its peers in the Staffing & Employment Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
ADP
58.73%
Staffing & Employment Services Industry
- Max
- 161.25%
- Q3
- 109.23%
- Median
- 58.73%
- Q1
- 15.69%
- Min
- 0.00%
ADP’s Dividend Payout Ratio of 58.73% is within the typical range for the Staffing & Employment Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TNET
29.34%
Staffing & Employment Services Industry
- Max
- 161.25%
- Q3
- 109.23%
- Median
- 58.73%
- Q1
- 15.69%
- Min
- 0.00%
TNET’s Dividend Payout Ratio of 29.34% is within the typical range for the Staffing & Employment Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | TNET |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 1.41% |
| Dividend Payout Ratio (TTM) | 58.73% | 29.34% |
Valuation
Price-to-Earnings Ratio
ADP
31.47
Staffing & Employment Services Industry
- Max
- 35.74
- Q3
- 30.98
- Median
- 20.51
- Q1
- 15.65
- Min
- 7.85
A P/E Ratio of 31.47 places ADP in the upper quartile for the Staffing & Employment Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
TNET
21.82
Staffing & Employment Services Industry
- Max
- 35.74
- Q3
- 30.98
- Median
- 20.51
- Q1
- 15.65
- Min
- 7.85
TNET’s P/E Ratio of 21.82 is within the middle range for the Staffing & Employment 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.
Forward P/E to Growth Ratio
ADP
3.56
Staffing & Employment Services Industry
- Max
- 3.23
- Q3
- 1.89
- Median
- 1.18
- Q1
- 1.00
- Min
- 0.39
ADP’s Forward PEG Ratio of 3.56 is exceptionally high for the Staffing & Employment Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
TNET
1.24
Staffing & Employment Services Industry
- Max
- 3.23
- Q3
- 1.89
- Median
- 1.18
- Q1
- 1.00
- Min
- 0.39
TNET’s Forward PEG Ratio of 1.24 is within the middle range of its peers in the Staffing & Employment Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ADP
6.21
Staffing & Employment Services Industry
- Max
- 3.70
- Q3
- 2.09
- Median
- 0.86
- Q1
- 0.59
- Min
- 0.09
With a P/S Ratio of 6.21, ADP trades at a valuation that eclipses even the highest in the Staffing & Employment Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
TNET
0.71
Staffing & Employment Services Industry
- Max
- 3.70
- Q3
- 2.09
- Median
- 0.86
- Q1
- 0.59
- Min
- 0.09
TNET’s P/S Ratio of 0.71 aligns with the market consensus for the Staffing & Employment Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ADP
21.49
Staffing & Employment Services Industry
- Max
- 21.09
- Q3
- 12.56
- Median
- 3.17
- Q1
- 1.96
- Min
- 0.33
The P/B Ratio is often not a primary valuation metric for the Staffing & Employment Services industry.
TNET
57.84
Staffing & Employment Services Industry
- Max
- 21.09
- Q3
- 12.56
- Median
- 3.17
- Q1
- 1.96
- Min
- 0.33
The P/B Ratio is often not a primary valuation metric for the Staffing & Employment Services industry.
Valuation at a Glance
| Symbol | ADP | TNET |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 31.47 | 21.82 |
| Forward PEG Ratio (TTM) | 3.56 | 1.24 |
| Price-to-Sales Ratio (P/S, TTM) | 6.21 | 0.71 |
| Price-to-Book Ratio (P/B, TTM) | 21.49 | 57.84 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.77 | 8.24 |
| EV-to-EBITDA (TTM) | 20.57 | 11.96 |
| EV-to-Sales (TTM) | 6.29 | 0.84 |