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

Updated

Here’s a clear look at ADP and XYL, comparing key factors like performance, valuation metrics, dividends, and financial strength.

Company Overview

ADP’s market capitalization of 132.66 billion USD is substantially larger than XYL’s 30.83 billion USD, indicating a significant difference in their market valuations.

With betas of 0.80 for ADP and 1.12 for XYL, both stocks show similar sensitivity to overall market movements.

SymbolADPXYL
Company NameAutomatic Data Processing, Inc.Xylem Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryStaffing & Employment ServicesIndustrial - Machinery
CEOMs. Maria BlackMr. Matthew Francis Pine
Price326.81 USD126.68 USD
Market Cap132.66 billion USD30.83 billion USD
Beta0.801.12
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980October 13, 2011
ADRNoNo

Performance Comparison

This chart compares the performance of ADP and XYL over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

  • ADP: $13522.99 (35.23%)
  • XYL: $9204.39 (-7.96%)

Valuation Metrics Comparison

This section compares the market valuation of ADP and XYL. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

  • ADP’s Forward PEG ratio of 3.80 and XYL’s Forward PEG ratio of 2.69 are both considered very high. For ADP, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. XYL’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
SymbolADPXYL
Price-to-Earnings Ratio (P/E, TTM)33.2633.99
Forward PEG Ratio (TTM)3.802.69
Price-to-Sales Ratio (P/S, TTM)6.573.59
Price-to-Book Ratio (P/B, TTM)22.712.85
EV-to-EBITDA (TTM)21.7318.23
EV-to-Sales (TTM)6.643.71

Dividend Comparison

Both ADP and XYL offer dividend yields in a similar range (1.80% and 1.20%, respectively), indicating comparable approaches to shareholder distributions.

SymbolADPXYL
Dividend Yield (TTM)1.80%1.20%

Financial Strength Metrics Comparison

Explore the financial strength details for ADP and XYL in the table below.

SymbolADPXYL
Current Ratio (TTM)1.021.89
Quick Ratio (TTM)1.021.41
Debt-to-Equity Ratio (TTM)0.730.20
Debt-to-Asset Ratio (TTM)0.080.13
Net Debt-to-EBITDA Ratio (TTM)0.260.62
Interest Coverage Ratio (TTM)7.9036.31