ADP vs. VRT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and VRT, 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 VRT’s 48.72 billion USD, indicating a significant difference in their market valuations.
VRT carries a higher beta at 1.73, indicating it’s more sensitive to market moves, while ADP (beta: 0.80) exhibits greater stability.
| Symbol | ADP | VRT |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | Vertiv Holdings Co |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Electrical Equipment & Parts |
| CEO | Maria Black | Giordano Albertazzi |
| Price | 309.2 USD | 127.84 USD |
| Market Cap | 125.51 billion USD | 48.72 billion USD |
| Beta | 0.80 | 1.73 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | August 2, 2018 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADP and VRT 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.
VRT
31.53%
Electrical Equipment & Parts Industry
- Max
- 40.77%
- Q3
- 24.97%
- Median
- 9.16%
- Q1
- -21.24%
- Min
- -83.49%
In the upper quartile for the Electrical Equipment & Parts industry, VRT’s Return on Equity of 31.53% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
VRT
14.66%
Electrical Equipment & Parts Industry
- Max
- 28.65%
- Q3
- 9.59%
- Median
- 4.18%
- Q1
- -26.21%
- Min
- -64.66%
In the upper quartile for the Electrical Equipment & Parts industry, VRT’s Return on Invested Capital of 14.66% 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.
VRT
7.92%
Electrical Equipment & Parts Industry
- Max
- 18.22%
- Q3
- 10.17%
- Median
- 3.30%
- Q1
- -100.73%
- Min
- -135.80%
VRT’s Net Profit Margin of 7.92% is aligned with the median group of its peers in the Electrical Equipment & Parts 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.
VRT
17.31%
Electrical Equipment & Parts Industry
- Max
- 19.88%
- Q3
- 14.79%
- Median
- 7.23%
- Q1
- -48.45%
- Min
- -140.29%
An Operating Profit Margin of 17.31% places VRT in the upper quartile for the Electrical Equipment & Parts 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 | VRT |
|---|---|---|
| Return on Equity (TTM) | 76.78% | 31.53% |
| Return on Assets (TTM) | 7.08% | 7.05% |
| Return on Invested Capital (TTM) | 23.22% | 14.66% |
| Net Profit Margin (TTM) | 19.79% | 7.92% |
| Operating Profit Margin (TTM) | 17.38% | 17.31% |
| Gross Profit Margin (TTM) | 47.09% | 36.32% |
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.
VRT
1.72
Electrical Equipment & Parts Industry
- Max
- 4.74
- Q3
- 3.44
- Median
- 2.63
- Q1
- 1.95
- Min
- 1.17
VRT’s Current Ratio of 1.72 falls into the lower quartile for the Electrical Equipment & Parts 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.
VRT
1.18
Electrical Equipment & Parts Industry
- Max
- 0.82
- Q3
- 0.68
- Median
- 0.61
- Q1
- 0.47
- Min
- 0.33
With a Debt-to-Equity Ratio of 1.18, VRT operates with exceptionally high leverage compared to the Electrical Equipment & Parts 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.
VRT
10.65
Electrical Equipment & Parts Industry
- Max
- 21.00
- Q3
- 9.09
- Median
- 3.12
- Q1
- -7.14
- Min
- -31.43
VRT’s Interest Coverage Ratio of 10.65 is in the upper quartile for the Electrical Equipment & Parts industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADP | VRT |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.72 |
| Quick Ratio (TTM) | 1.02 | 1.28 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 1.18 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.33 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 1.15 |
| Interest Coverage Ratio (TTM) | 7.90 | 10.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADP and VRT. 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.
VRT
0.11%
Electrical Equipment & Parts Industry
- Max
- 1.81%
- Q3
- 0.50%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
VRT’s Dividend Yield of 0.11% is consistent with its peers in the Electrical Equipment & Parts 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.
VRT
7.07%
Electrical Equipment & Parts Industry
- Max
- 162.68%
- Q3
- 20.84%
- Median
- 4.65%
- Q1
- 0.00%
- Min
- 0.00%
VRT’s Dividend Payout Ratio of 7.07% is within the typical range for the Electrical Equipment & Parts industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | VRT |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 0.11% |
| Dividend Payout Ratio (TTM) | 58.73% | 7.07% |
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.
VRT
73.08
Electrical Equipment & Parts Industry
- Max
- 27.52
- Q3
- 27.52
- Median
- 24.22
- Q1
- 20.08
- Min
- 9.48
At 73.08, VRT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Electrical Equipment & Parts industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
VRT
4.20
Electrical Equipment & Parts Industry
- Max
- 5.30
- Q3
- 4.04
- Median
- 2.62
- Q1
- 2.03
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Electrical Equipment & Parts industry.
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.
VRT
5.79
Electrical Equipment & Parts Industry
- Max
- 5.76
- Q3
- 5.66
- Median
- 3.18
- Q1
- 1.88
- Min
- 0.31
With a P/S Ratio of 5.79, VRT trades at a valuation that eclipses even the highest in the Electrical Equipment & Parts industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
VRT
18.26
Electrical Equipment & Parts Industry
- Max
- 10.91
- Q3
- 6.77
- Median
- 3.73
- Q1
- 1.80
- Min
- 0.59
At 18.26, VRT’s P/B Ratio is at an extreme premium to the Electrical Equipment & Parts 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.
Valuation at a Glance
| Symbol | ADP | VRT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 31.47 | 73.08 |
| Forward PEG Ratio (TTM) | 3.56 | 4.20 |
| Price-to-Sales Ratio (P/S, TTM) | 6.21 | 5.79 |
| Price-to-Book Ratio (P/B, TTM) | 21.49 | 18.26 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.77 | 37.37 |
| EV-to-EBITDA (TTM) | 20.57 | 34.51 |
| EV-to-Sales (TTM) | 6.29 | 5.99 |