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 | 89.52 billion USD | 89.50 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
Performance Metrics
| Metric | ADP | WM |
|---|---|---|
| Total Return (1Y) | -25.37% | -1.03% |
Risk Profile
Drawdown History
Risk Metrics
| Metric | ADP | WM |
|---|---|---|
| Volatility (1Y, Annualized) | 24.40% | 19.23% |
| Beta (5Y) | 0.83 | 0.44 |
| Avg. Volume (3M) | 2.99M | 2.20M |
Risk-Adjusted Performance
Risk-Return Positioning
Profitability
ROE (TTM)
Both companies show strong equity returns, but Automatic Data Processing (ADP) at 71.21% is the standout with ROE above its industry range; Waste Management (WM) at 29.94% also sits in the top quartile.
ADP
Commercial & Professional Services industry group
71.21%
- ADP
- 71.21%
- Max
- 53.04%
- Q3
- 25.86%
- Median
- 14.00%
- Q1
- 2.97%
- Min
- -28.46%
WM
Commercial & Professional Services industry group
29.94%
- Max
- 53.04%
- WM
- 29.94%
- Q3
- 25.86%
- Median
- 14.00%
- Q1
- 2.97%
- Min
- -28.46%
Net Margin (TTM)
Automatic Data Processing (ADP) at 20.12% retains a top-quartile share of revenue as profit, ahead of Waste Management (WM) at 10.99%, which keeps about the industry-typical share.
ADP
Commercial & Professional Services industry group
20.12%
- Max
- 26.63%
- ADP
- 20.12%
- Q3
- 11.66%
- Median
- 6.30%
- Q1
- 1.46%
- Min
- -13.34%
WM
Commercial & Professional Services industry group
10.99%
- Max
- 26.63%
- Q3
- 11.66%
- WM
- 10.99%
- Median
- 6.30%
- Q1
- 1.46%
- Min
- -13.34%
Operating Margin (TTM)
Automatic Data Processing (ADP) at 30.18% operates in the top operating margin quartile, ahead of Waste Management (WM) at 17.52%, which runs around its industry’s norm.
ADP
Commercial & Professional Services industry group
30.18%
- Max
- 38.33%
- ADP
- 30.18%
- Q3
- 17.72%
- Median
- 9.47%
- Q1
- 3.22%
- Min
- -4.52%
WM
Commercial & Professional Services industry group
17.52%
- Max
- 38.33%
- Q3
- 17.72%
- WM
- 17.52%
- Median
- 9.47%
- Q1
- 3.22%
- Min
- -4.52%
Profitability Metrics
| Metric | ADP | WM |
|---|---|---|
| ROE (TTM) | 71.21% | 29.94% |
| ROA (TTM) | 5.95% | 6.60% |
| Net Margin (TTM) | 20.12% | 10.99% |
| Operating Margin (TTM) | 30.18% | 17.52% |
| Gross Margin (TTM) | 48.50% | 40.61% |
Growth
Revenue Growth
Revenue Growth Metrics
| Metric | ADP | WM |
|---|---|---|
| Revenue Growth (YoY) | 7.07% | 14.24% |
| Revenue Growth (3Y CAGR) | 7.61% | 8.56% |
EPS Growth
EPS Growth Metrics
| Metric | ADP | WM |
|---|---|---|
| EPS Growth (YoY) | 9.67% | -1.62% |
| EPS Growth (3Y CAGR) | 12.55% | 7.52% |
Financial Strength
Current Ratio (MRQ)
Both Automatic Data Processing (ADP) at 1.04 and Waste Management (WM) at 0.93 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
1.04
- Max
- 3.17
- Q3
- 2.04
- Median
- 1.51
- Q1
- 1.13
- ADP
- 1.04
- Min
- 0.45
WM
Commercial & Professional Services industry group
0.93
- Max
- 3.17
- Q3
- 2.04
- Median
- 1.51
- Q1
- 1.13
- WM
- 0.93
- Min
- 0.45
Debt / Equity (MRQ)
Automatic Data Processing (ADP) at 0.69 carries an industry-typical debt-to-equity mix, while Waste Management (WM) at 2.28 uses more debt funding than most peers.
ADP
Commercial & Professional Services industry group
0.69
- Max
- 2.61
- Q3
- 1.38
- Median
- 0.93
- ADP
- 0.69
- Q1
- 0.40
- Min
- 0.01
WM
Commercial & Professional Services industry group
2.28
- Max
- 2.61
- WM
- 2.28
- Q3
- 1.38
- Median
- 0.93
- Q1
- 0.40
- Min
- 0.01
Financial Strength Metrics
| Metric | ADP | WM |
|---|---|---|
| Current Ratio (MRQ) | 1.04 | 0.93 |
| Debt / Equity (MRQ) | 0.69 | 2.28 |
| Net Debt / EBITDA | 0.18 | 2.97 |
Dividends
Dividend Yield (TTM)
Automatic Data Processing (ADP) at 2.88% delivers top-quartile income for its industry, while Waste Management (WM) at 1.53% pays a more typical yield — both are credible income propositions, ADP the richer one.
ADP
Commercial & Professional Services industry group
2.88%
- Max
- 4.01%
- ADP
- 2.88%
- Q3
- 1.68%
- Median
- 0.48%
- Q1
- 0.00%
- Min
- 0.00%
WM
Commercial & Professional Services industry group
1.53%
- Max
- 4.01%
- Q3
- 1.68%
- WM
- 1.53%
- Median
- 0.48%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Automatic Data Processing (ADP) at 60.45% and Waste Management (WM) at 49.49% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
ADP
Commercial & Professional Services industry group
60.45%
- Max
- 90.59%
- ADP
- 60.45%
- Q3
- 36.71%
- Median
- 16.64%
- Q1
- 0.00%
- Min
- 0.00%
WM
Commercial & Professional Services industry group
49.49%
- Max
- 90.59%
- WM
- 49.49%
- Q3
- 36.71%
- Median
- 16.64%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ADP | WM |
|---|---|---|
| Dividend Yield (TTM) | 2.88% | 1.53% |
| Dividend Payout Ratio (TTM) | 60.45% | 49.49% |
Valuation
P/E Ratio (TTM)
Both Automatic Data Processing (ADP) at 20.87 and Waste Management (WM) at 32.30 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
ADP
Commercial & Professional Services industry group
20.87
- Max
- 67.48
- Q3
- 35.82
- Median
- 20.98
- ADP
- 20.87
- Q1
- 14.64
- Min
- 4.14
WM
Commercial & Professional Services industry group
32.30
- Max
- 67.48
- Q3
- 35.82
- WM
- 32.30
- Median
- 20.98
- Q1
- 14.64
- Min
- 4.14
P/S Ratio (TTM)
Both Automatic Data Processing (ADP) at 4.14 and Waste Management (WM) at 3.52 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
4.14
- Max
- 6.61
- ADP
- 4.14
- Q3
- 3.34
- Median
- 1.33
- Q1
- 0.66
- Min
- 0.09
WM
Commercial & Professional Services industry group
3.52
- Max
- 6.61
- WM
- 3.52
- Q3
- 3.34
- Median
- 1.33
- Q1
- 0.66
- Min
- 0.09
P/B Ratio (MRQ)
Both look rich against book: Waste Management (WM) at 8.95 sits in the upper P/B ratio quartile, and Automatic Data Processing (ADP) at 14.13 prices even higher, above its industry range.
ADP
Commercial & Professional Services industry group
14.13
- ADP
- 14.13
- Max
- 12.70
- Q3
- 6.61
- Median
- 3.22
- Q1
- 1.81
- Min
- -4.70
WM
Commercial & Professional Services industry group
8.95
- Max
- 12.70
- WM
- 8.95
- Q3
- 6.61
- Median
- 3.22
- Q1
- 1.81
- Min
- -4.70
Valuation Metrics
| Metric | ADP | WM |
|---|---|---|
| P/E Ratio (TTM) | 20.87 | 32.30 |
| P/S Ratio (TTM) | 4.14 | 3.52 |
| P/B Ratio (MRQ) | 14.13 | 8.95 |
| Free Cash Flow Yield (TTM) | 5.31% | 2.39% |