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 | 114.21 billion USD | 87.80 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) | -3.46% | -2.03% |
| Total Return (3Y, Annualized) | 6.48% | 12.92% |
| Total Return (5Y, Annualized) | 8.74% | 8.84% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ADP | WM |
|---|---|---|
| Volatility (1Y, Annualized) | 27.14% | 20.19% |
| Beta (5Y) | 0.82 | 0.42 |
| Max Drawdown (5Y) | -40.78% | -18.14% |
| Avg. Volume (3M) | 2.58M | 2.13M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ADP | WM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.28 | -0.30 |
| Sortino Ratio (1Y) | -0.41 | -0.42 |
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
- 26.63%
- ADP
- 20.11%
- Q3
- 10.98%
- Median
- 5.53%
- Q1
- 0.42%
- Min
- -13.84%
WM
Commercial & Professional Services industry group
11.12%
- Max
- 26.63%
- WM
- 11.12%
- Q3
- 10.98%
- Median
- 5.53%
- Q1
- 0.42%
- 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
- 38.33%
- ADP
- 23.46%
- Q3
- 18.05%
- Median
- 9.96%
- Q1
- 4.48%
- Min
- -4.70%
WM
Commercial & Professional Services industry group
18.99%
- Max
- 38.33%
- WM
- 18.99%
- Q3
- 18.05%
- Median
- 9.96%
- Q1
- 4.48%
- 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
- 1.99
- Median
- 1.49
- Q1
- 1.14
- ADP
- 1.05
- Min
- 0.45
WM
Commercial & Professional Services industry group
0.91
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.49
- 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
- 1.25
- Median
- 0.93
- ADP
- 0.91
- Q1
- 0.31
- Min
- 0.00
WM
Commercial & Professional Services industry group
2.35
- WM
- 2.35
- Max
- 2.35
- Q3
- 1.25
- Median
- 0.93
- Q1
- 0.31
- 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 2.33% delivers top-quartile income for its industry, while Waste Management (WM) at 1.63% pays a more typical yield — both are credible income propositions, ADP the richer one.
ADP
Commercial & Professional Services industry group
2.33%
- Max
- 4.25%
- ADP
- 2.33%
- Q3
- 1.74%
- Median
- 0.51%
- Q1
- 0.00%
- Min
- 0.00%
WM
Commercial & Professional Services industry group
1.63%
- Max
- 4.25%
- Q3
- 1.74%
- WM
- 1.63%
- Median
- 0.51%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Automatic Data Processing (ADP) at 60.69% and Waste Management (WM) at 50.07% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
ADP
Commercial & Professional Services industry group
60.69%
- Max
- 90.59%
- ADP
- 60.69%
- Q3
- 36.96%
- Median
- 12.78%
- Q1
- 0.00%
- Min
- 0.00%
WM
Commercial & Professional Services industry group
50.07%
- Max
- 90.59%
- WM
- 50.07%
- Q3
- 36.96%
- Median
- 12.78%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ADP | WM |
|---|---|---|
| Dividend Yield (TTM) | 2.33% | 1.63% |
| Dividend Payout Ratio (TTM) | 60.69% | 50.07% |
Valuation
P/E Ratio (TTM)
Both Automatic Data Processing (ADP) at 26.25 and Waste Management (WM) at 30.76 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
26.25
- Max
- 50.49
- Q3
- 31.99
- ADP
- 26.25
- Median
- 24.05
- Q1
- 16.25
- Min
- 6.92
WM
Commercial & Professional Services industry group
30.76
- Max
- 50.49
- Q3
- 31.99
- WM
- 30.76
- Median
- 24.05
- Q1
- 16.25
- Min
- 6.92
P/S Ratio (TTM)
Waste Management (WM) at 3.42 is priced about in line with its industry on P/S ratio, while Automatic Data Processing (ADP) at 5.20 sits in the pricier quartile — ADP costs more per dollar of sales.
ADP
Commercial & Professional Services industry group
5.20
- Max
- 7.25
- ADP
- 5.20
- Q3
- 3.51
- Median
- 1.44
- Q1
- 0.74
- Min
- 0.15
WM
Commercial & Professional Services industry group
3.42
- Max
- 7.25
- Q3
- 3.51
- WM
- 3.42
- Median
- 1.44
- Q1
- 0.74
- Min
- 0.15
P/B Ratio (MRQ)
Both look rich against book: Waste Management (WM) at 8.85 sits in the upper P/B ratio quartile, and Automatic Data Processing (ADP) at 18.96 prices even higher, above its industry range.
ADP
Commercial & Professional Services industry group
18.96
- ADP
- 18.96
- Max
- 12.19
- Q3
- 5.83
- Median
- 2.98
- Q1
- 1.58
- Min
- -4.40
WM
Commercial & Professional Services industry group
8.85
- Max
- 12.19
- WM
- 8.85
- Q3
- 5.83
- Median
- 2.98
- Q1
- 1.58
- Min
- -4.40
Valuation Metrics
| Metric | ADP | WM |
|---|---|---|
| P/E Ratio (TTM) | 26.25 | 30.76 |
| P/S Ratio (TTM) | 5.20 | 3.42 |
| P/B Ratio (MRQ) | 18.96 | 8.85 |
| Free Cash Flow Yield (TTM) | 4.59% | 2.67% |