ADP vs. TRI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and TRI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADP | TRI |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Thomson Reuters Corporation |
| Country | United States | Canada |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Professional Services | Professional Services |
| Market Capitalization | 102.27 billion USD | 62.47 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 17, 1980 | June 12, 2002 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADP and TRI 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 | TRI |
|---|---|---|
| 5-Day Price Return | -0.38% | 4.24% |
| 13-Week Price Return | -16.14% | -14.58% |
| 26-Week Price Return | -17.88% | -23.32% |
| 52-Week Price Return | -17.69% | -14.42% |
| Month-to-Date Return | -2.77% | -7.82% |
| Year-to-Date Return | -13.54% | -14.20% |
| 10-Day Avg. Volume | 2.15M | 0.57M |
| 3-Month Avg. Volume | 1.76M | 0.50M |
| 3-Month Volatility | 18.71% | 25.49% |
| Beta | 0.88 | 0.47 |
Profitability
Return on Equity (TTM)
ADP
70.42%
Professional Services Industry
- Max
- 50.82%
- Q3
- 32.98%
- Median
- 21.73%
- Q1
- 12.35%
- Min
- -10.69%
ADP’s Return on Equity of 70.42% 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.
TRI
14.44%
Professional Services Industry
- Max
- 50.82%
- Q3
- 32.98%
- Median
- 21.73%
- Q1
- 12.35%
- Min
- -10.69%
TRI’s Return on Equity of 14.44% is on par with the norm for the Professional Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ADP
19.79%
Professional Services Industry
- Max
- 27.86%
- Q3
- 14.27%
- Median
- 7.71%
- Q1
- 4.47%
- Min
- -9.49%
A Net Profit Margin of 19.79% places ADP in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
TRI
23.82%
Professional Services Industry
- Max
- 27.86%
- Q3
- 14.27%
- Median
- 7.71%
- Q1
- 4.47%
- Min
- -9.49%
A Net Profit Margin of 23.82% places TRI in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
ADP
26.18%
Professional Services Industry
- Max
- 35.71%
- Q3
- 19.52%
- Median
- 12.30%
- Q1
- 7.86%
- Min
- -1.29%
An Operating Profit Margin of 26.18% 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.
TRI
31.37%
Professional Services Industry
- Max
- 35.71%
- Q3
- 19.52%
- Median
- 12.30%
- Q1
- 7.86%
- Min
- -1.29%
An Operating Profit Margin of 31.37% places TRI 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.
Profitability at a Glance
| Symbol | ADP | TRI |
|---|---|---|
| Return on Equity (TTM) | 70.42% | 14.44% |
| Return on Assets (TTM) | 7.25% | 9.66% |
| Net Profit Margin (TTM) | 19.79% | 23.82% |
| Operating Profit Margin (TTM) | 26.18% | 31.37% |
| Gross Profit Margin (TTM) | 47.26% | 95.37% |
Financial Strength
Current Ratio (MRQ)
ADP
1.05
Professional Services Industry
- Max
- 2.45
- Q3
- 1.69
- Median
- 1.33
- 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.
TRI
0.61
Professional Services Industry
- Max
- 2.45
- Q3
- 1.69
- Median
- 1.33
- Q1
- 1.10
- Min
- 0.47
TRI’s Current Ratio of 0.61 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.
Debt-to-Equity Ratio (MRQ)
ADP
1.44
Professional Services Industry
- Max
- 2.55
- Q3
- 1.54
- Median
- 0.94
- Q1
- 0.45
- Min
- 0.00
ADP’s Debt-to-Equity Ratio of 1.44 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.
TRI
0.21
Professional Services Industry
- Max
- 2.55
- Q3
- 1.54
- Median
- 0.94
- Q1
- 0.45
- Min
- 0.00
Falling into the lower quartile for the Professional Services industry, TRI’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
ADP
39.45
Professional Services Industry
- Max
- 39.45
- Q3
- 20.05
- Median
- 11.35
- 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.
TRI
17.23
Professional Services Industry
- Max
- 39.45
- Q3
- 20.05
- Median
- 11.35
- Q1
- 5.46
- Min
- -1.21
TRI’s Interest Coverage Ratio of 17.23 is positioned comfortably within the norm for the Professional Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ADP | TRI |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 0.61 |
| Quick Ratio (MRQ) | 1.05 | 0.49 |
| Debt-to-Equity Ratio (MRQ) | 1.44 | 0.21 |
| Interest Coverage Ratio (TTM) | 39.45 | 17.23 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ADP
2.40%
Professional Services Industry
- Max
- 4.35%
- Q3
- 2.86%
- Median
- 1.57%
- Q1
- 0.72%
- Min
- 0.00%
ADP’s Dividend Yield of 2.40% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
TRI
1.62%
Professional Services Industry
- Max
- 4.35%
- Q3
- 2.86%
- Median
- 1.57%
- Q1
- 0.72%
- Min
- 0.00%
TRI’s Dividend Yield of 1.62% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
ADP
59.30%
Professional Services Industry
- Max
- 99.60%
- Q3
- 69.06%
- Median
- 43.41%
- Q1
- 19.44%
- Min
- 0.00%
ADP’s Dividend Payout Ratio of 59.30% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TRI
58.00%
Professional Services Industry
- Max
- 99.60%
- Q3
- 69.06%
- Median
- 43.41%
- Q1
- 19.44%
- Min
- 0.00%
TRI’s Dividend Payout Ratio of 58.00% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | TRI |
|---|---|---|
| Dividend Yield (TTM) | 2.40% | 1.62% |
| Dividend Payout Ratio (TTM) | 59.30% | 58.00% |
Valuation
Price-to-Earnings Ratio (TTM)
ADP
24.68
Professional Services Industry
- Max
- 52.91
- Q3
- 32.20
- Median
- 25.00
- Q1
- 17.95
- Min
- 6.60
ADP’s P/E Ratio of 24.68 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.
TRI
35.75
Professional Services Industry
- Max
- 52.91
- Q3
- 32.20
- Median
- 25.00
- Q1
- 17.95
- Min
- 6.60
A P/E Ratio of 35.75 places TRI in the upper quartile for the Professional Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
ADP
4.88
Professional Services Industry
- Max
- 8.52
- Q3
- 4.25
- Median
- 2.07
- Q1
- 0.84
- Min
- 0.18
ADP’s P/S Ratio of 4.88 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.
TRI
8.52
Professional Services Industry
- Max
- 8.52
- Q3
- 4.25
- Median
- 2.07
- Q1
- 0.84
- Min
- 0.18
TRI’s P/S Ratio of 8.52 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.
Price-to-Book Ratio (MRQ)
ADP
18.65
Professional Services Industry
- Max
- 18.65
- Q3
- 9.28
- Median
- 6.16
- Q1
- 2.96
- Min
- 0.53
ADP’s P/B Ratio of 18.65 is in the upper tier for the Professional Services 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.
TRI
5.90
Professional Services Industry
- Max
- 18.65
- Q3
- 9.28
- Median
- 6.16
- Q1
- 2.96
- Min
- 0.53
TRI’s P/B Ratio of 5.90 is within the conventional range for the Professional Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ADP | TRI |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.68 | 35.75 |
| Price-to-Sales Ratio (TTM) | 4.88 | 8.52 |
| Price-to-Book Ratio (MRQ) | 18.65 | 5.90 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.25 | 34.48 |