ADP vs. WM: Automatic Data Processing vs. Waste Management Stock Comparison
How do Automatic Data Processing (ADP) and Waste Management (WM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Automatic Data Processing (ADP) and Waste Management (WM) both fall under the Commercial & Professional Services industry group, but ADP is classified in Professional Services while WM is classified in Commercial Services & Supplies.
| Profile Item | ADP | WM |
|---|---|---|
| Name | Automatic Data Processing Inc. | Waste Management, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Commercial & Professional Services | Commercial & Professional Services |
| GICS Industry | Professional Services | Commercial Services & Supplies |
| GICS Sub-Industry | Human Resource & Employment Services | Environmental & Facilities Services |
| Market Capitalization | 108.44 billion USD | 89.76 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | March 17, 1980 | June 22, 1988 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ADP | WM |
|---|---|---|
| Total Return (1Y) | -7.01% | 0.88% |
| Total Return (3Y, Annualized) | 5.15% | 13.52% |
| Total Return (5Y, Annualized) | 7.20% | 10.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ADP | WM |
|---|---|---|
| Volatility (1Y, Annualized) | 26.90% | 20.21% |
| Beta (5Y) | 0.81 | 0.42 |
| Max Drawdown (5Y) | -40.78% | -18.14% |
| Avg. Volume (3M) | 2.66M | 2.16M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ADP | WM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.41 | -0.15 |
| Sortino Ratio (1Y) | -0.61 | -0.22 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Automatic Data Processing (ADP) at 72.24% is the standout with ROE above its industry range; Waste Management (WM) at 29.84% also sits in the top quartile.
ADP
Commercial & Professional Services industry group
72.24%
- ADP
- 72.24%
- Max
- 46.24%
- Q3
- 24.40%
- Median
- 13.50%
- Q1
- 0.62%
- Min
- -31.82%
WM
Commercial & Professional Services industry group
29.84%
- Max
- 46.24%
- WM
- 29.84%
- Q3
- 24.40%
- Median
- 13.50%
- Q1
- 0.62%
- Min
- -31.82%
Net Margin (TTM)
For every dollar of sales, both Automatic Data Processing (ADP) at 20.11% and Waste Management (WM) at 11.12% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
ADP
Commercial & Professional Services industry group
20.11%
- Max
- 23.27%
- ADP
- 20.11%
- Q3
- 10.86%
- Median
- 5.53%
- Q1
- 0.56%
- Min
- -13.84%
WM
Commercial & Professional Services industry group
11.12%
- Max
- 23.27%
- WM
- 11.12%
- Q3
- 10.86%
- Median
- 5.53%
- Q1
- 0.56%
- Min
- -13.84%
Operating Margin (TTM)
Both Automatic Data Processing (ADP) at 23.46% and Waste Management (WM) at 18.99% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
ADP
Commercial & Professional Services industry group
23.46%
- Max
- 37.53%
- ADP
- 23.46%
- Q3
- 17.72%
- Median
- 9.96%
- Q1
- 4.50%
- Min
- -4.70%
WM
Commercial & Professional Services industry group
18.99%
- Max
- 37.53%
- WM
- 18.99%
- Q3
- 17.72%
- Median
- 9.96%
- Q1
- 4.50%
- Min
- -4.70%
Profitability Metrics
| Metric | ADP | WM |
|---|---|---|
| ROE (TTM) | 72.24% | 29.84% |
| ROA (TTM) | 6.25% | 6.57% |
| Net Margin (TTM) | 20.11% | 11.12% |
| Operating Margin (TTM) | 23.46% | 18.99% |
| Gross Margin (TTM) | 48.65% | 40.60% |
Growth
Revenue Growth
Waste Management (WM) at 14.24% sits in the top revenue growth quartile, while Automatic Data Processing (ADP) at 6.74% is closer to the peer norm — faster top-line expansion for WM.
EPS Growth
Only one side can be read here: Waste Management (WM) reports EPS growth of -1.62%, ranked against its industry; Automatic Data Processing (ADP) has no EPS growth figure this period.
Growth Metrics
| Metric | ADP | WM |
|---|---|---|
| Revenue Growth (YoY) | 6.74% | 14.24% |
| Revenue Growth (3Y CAGR) | 6.81% | 8.56% |
| EPS Growth (YoY) | -- | -1.62% |
| EPS Growth (3Y CAGR) | -- | 7.52% |
Financial Strength
Current Ratio (MRQ)
Both Automatic Data Processing (ADP) at 1.05 and Waste Management (WM) at 0.91 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
ADP
Commercial & Professional Services industry group
1.05
- Max
- 3.24
- Q3
- 1.98
- Median
- 1.48
- Q1
- 1.14
- ADP
- 1.05
- Min
- 0.45
WM
Commercial & Professional Services industry group
0.91
- Max
- 3.24
- Q3
- 1.98
- Median
- 1.48
- Q1
- 1.14
- WM
- 0.91
- Min
- 0.45
Debt / Equity (MRQ)
Automatic Data Processing (ADP) at 0.91 carries an industry-typical debt-to-equity mix, while Waste Management (WM) at 2.35 uses more debt funding than most peers.
ADP
Commercial & Professional Services industry group
0.91
- Max
- 2.35
- Q3
- 1.26
- Median
- 0.94
- ADP
- 0.91
- Q1
- 0.37
- Min
- 0.00
WM
Commercial & Professional Services industry group
2.35
- WM
- 2.35
- Max
- 2.35
- Q3
- 1.26
- Median
- 0.94
- Q1
- 0.37
- Min
- 0.00
Financial Strength Metrics
| Metric | ADP | WM |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 0.91 |
| Debt / Equity (MRQ) | 0.91 | 2.35 |
| Net Debt / EBITDA | 0.20 | 2.93 |
Dividends
Dividend Yield (TTM)
Automatic Data Processing (ADP) at 2.40% delivers top-quartile income for its industry, while Waste Management (WM) at 1.58% pays a more typical yield — both are credible income propositions, ADP the richer one.
ADP
Commercial & Professional Services industry group
2.40%
- Max
- 4.53%
- ADP
- 2.40%
- Q3
- 1.84%
- Median
- 0.51%
- Q1
- 0.00%
- Min
- 0.00%
WM
Commercial & Professional Services industry group
1.58%
- Max
- 4.53%
- Q3
- 1.84%
- WM
- 1.58%
- Median
- 0.51%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both pay out more than their industries’ typical bands, and WM more so: Automatic Data Processing (ADP) at 60.69% sits above the band, while Waste Management (WM) at 93.22% exceeds every peer in its group.
ADP
Commercial & Professional Services industry group
60.69%
- Max
- 90.59%
- ADP
- 60.69%
- Q3
- 37.26%
- Median
- 15.87%
- Q1
- 0.00%
- Min
- 0.00%
WM
Commercial & Professional Services industry group
93.22%
- WM
- 93.22%
- Max
- 90.59%
- Q3
- 37.26%
- Median
- 15.87%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ADP | WM |
|---|---|---|
| Dividend Yield (TTM) | 2.40% | 1.58% |
| Dividend Payout Ratio (TTM) | 60.69% | 93.22% |
Valuation
P/E Ratio (TTM)
Automatic Data Processing (ADP) at 24.93 is near its industry’s usual P/E ratio, while Waste Management (WM) at 59.25 sits above its peer range — an unusually expensive price for WM’s trailing earnings.
ADP
Commercial & Professional Services industry group
24.93
- Max
- 49.50
- Q3
- 31.36
- ADP
- 24.93
- Median
- 23.50
- Q1
- 17.33
- Min
- 6.47
WM
Commercial & Professional Services industry group
59.25
- WM
- 59.25
- Max
- 49.50
- Q3
- 31.36
- Median
- 23.50
- Q1
- 17.33
- Min
- 6.47
P/S Ratio (TTM)
Both Automatic Data Processing (ADP) at 4.94 and Waste Management (WM) at 3.50 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
ADP
Commercial & Professional Services industry group
4.94
- Max
- 7.09
- ADP
- 4.94
- Q3
- 3.35
- Median
- 1.39
- Q1
- 0.74
- Min
- 0.14
WM
Commercial & Professional Services industry group
3.50
- Max
- 7.09
- WM
- 3.50
- Q3
- 3.35
- Median
- 1.39
- Q1
- 0.74
- Min
- 0.14
P/B Ratio (MRQ)
Both look rich against book: Waste Management (WM) at 9.05 sits in the upper P/B ratio quartile, and Automatic Data Processing (ADP) at 18.00 prices even higher, above its industry range.
ADP
Commercial & Professional Services industry group
18.00
- ADP
- 18.00
- Max
- 12.24
- Q3
- 5.90
- Median
- 2.99
- Q1
- 1.66
- Min
- -4.66
WM
Commercial & Professional Services industry group
9.05
- Max
- 12.24
- WM
- 9.05
- Q3
- 5.90
- Median
- 2.99
- Q1
- 1.66
- Min
- -4.66
Valuation Metrics
| Metric | ADP | WM |
|---|---|---|
| P/E Ratio (TTM) | 24.93 | 59.25 |
| P/S Ratio (TTM) | 4.94 | 3.50 |
| P/B Ratio (MRQ) | 18.00 | 9.05 |
| Free Cash Flow Yield (TTM) | 4.84% | 2.62% |