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

Updated

Here’s a clear look at ADP and VRSK, 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 VRSK’s 43.69 billion USD by roughly 3.00×.

With betas of 0.78 for ADP and 0.90 for VRSK, both show similar volatility profiles relative to the overall market.

SymbolADPVRSK
Company NameAutomatic Data Processing, Inc.Verisk Analytics, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesConsulting Services
CEOMs. Maria BlackMr. Lee M. Shavel
Price322.63 USD312.33 USD
Market Cap130.96 billion USD43.69 billion USD
Beta0.780.90
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980October 7, 2009
ADRNoNo

Performance Comparison

This chart compares the performance of ADP and VRSK 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

For a detailed comparison of valuation metrics between ADP and VRSK, please refer to the table below.

SymbolADPVRSK
Price-to-Earnings Ratio (P/E, TTM)32.8345.14
Forward PEG Ratio (TTM)3.723.29
Price-to-Sales Ratio (P/S, TTM)6.4814.91
Price-to-Book Ratio (P/B, TTM)22.42356.24
Price-to-Free Cash Flow Ratio (P/FCF, TTM)28.9743.95
EV-to-EBITDA (TTM)21.4529.22
EV-to-Sales (TTM)6.5615.87
EV-to-Free Cash Flow (TTM)29.3246.79

Dividend Comparison

ADP’s dividend yield of 1.82% is about 251% higher than VRSK’s 0.52%, underscoring its stronger focus on returning cash to shareholders.

SymbolADPVRSK
Dividend Yield (TTM)1.82%0.52%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ADP and VRSK, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • VRSK is highly leveraged (debt-to-equity ratio 31.99), elevating both potential gains and risks, compared to ADP at 0.73, which maintains a steadier capital structure.
SymbolADPVRSK
Current Ratio (TTM)1.021.27
Quick Ratio (TTM)1.021.27
Debt-to-Equity Ratio (TTM)0.7331.99
Debt-to-Assets Ratio (TTM)0.080.77
Interest Coverage Ratio (TTM)7.909.67