ADP vs. ZTO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADP and ZTO, 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 ZTO’s 14.52 billion USD, indicating a significant difference in their market valuations.
ADP has a positive beta (0.80), indicating it generally moves with the broader market, whereas ZTO has a negative beta (-0.17), often moving inversely, which can offer diversification or hedging benefits.
ZTO is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ADP, on the other hand, is a domestic entity.
| Symbol | ADP | ZTO |
|---|---|---|
| Company Name | Automatic Data Processing, Inc. | ZTO Express (Cayman) Inc. |
| Country | US | CN |
| Sector | Industrials | Industrials |
| Industry | Staffing & Employment Services | Integrated Freight & Logistics |
| CEO | Maria Black | Meisong Lai |
| Price | 309.2 USD | 18.05 USD |
| Market Cap | 125.51 billion USD | 14.52 billion USD |
| Beta | 0.80 | -0.17 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | October 27, 2016 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ADP and ZTO 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.
ZTO
15.30%
Integrated Freight & Logistics Industry
- Max
- 37.37%
- Q3
- 30.76%
- Median
- 15.30%
- Q1
- 6.33%
- Min
- -26.64%
ZTO’s Return on Equity of 15.30% is on par with the norm for the Integrated Freight & Logistics industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
ZTO
11.37%
Integrated Freight & Logistics Industry
- Max
- 17.03%
- Q3
- 12.11%
- Median
- 8.38%
- Q1
- 2.55%
- Min
- 0.79%
ZTO’s Return on Invested Capital of 11.37% is in line with the norm for the Integrated Freight & Logistics industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
ZTO
20.76%
Integrated Freight & Logistics Industry
- Max
- 7.64%
- Q3
- 4.86%
- Median
- 3.72%
- Q1
- 0.61%
- Min
- 0.61%
ZTO’s Net Profit Margin of 20.76% is exceptionally high, placing it well beyond the typical range for the Integrated Freight & Logistics industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
ZTO
26.35%
Integrated Freight & Logistics Industry
- Max
- 11.80%
- Q3
- 9.36%
- Median
- 5.93%
- Q1
- 3.63%
- Min
- 0.83%
ZTO’s Operating Profit Margin of 26.35% is exceptionally high, placing it well above the typical range for the Integrated Freight & Logistics industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ADP | ZTO |
|---|---|---|
| Return on Equity (TTM) | 76.78% | 15.30% |
| Return on Assets (TTM) | 7.08% | 10.07% |
| Return on Invested Capital (TTM) | 23.22% | 11.37% |
| Net Profit Margin (TTM) | 19.79% | 20.76% |
| Operating Profit Margin (TTM) | 17.38% | 26.35% |
| Gross Profit Margin (TTM) | 47.09% | 29.65% |
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.
ZTO
1.05
Integrated Freight & Logistics Industry
- Max
- 1.83
- Q3
- 1.36
- Median
- 1.13
- Q1
- 1.02
- Min
- 0.78
ZTO’s Current Ratio of 1.05 aligns with the median group of the Integrated Freight & Logistics industry, indicating that its short-term liquidity is in line with its sector peers.
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.
ZTO
0.27
Integrated Freight & Logistics Industry
- Max
- 2.51
- Q3
- 1.69
- Median
- 0.45
- Q1
- 0.24
- Min
- 0.16
ZTO’s Debt-to-Equity Ratio of 0.27 is typical for the Integrated Freight & Logistics industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
ZTO
36.90
Integrated Freight & Logistics Industry
- Max
- 19.14
- Q3
- 12.59
- Median
- 6.24
- Q1
- 1.76
- Min
- 0.11
With an Interest Coverage Ratio of 36.90, ZTO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Integrated Freight & Logistics industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ADP | ZTO |
|---|---|---|
| Current Ratio (TTM) | 1.02 | 1.05 |
| Quick Ratio (TTM) | 1.02 | 1.05 |
| Debt-to-Equity Ratio (TTM) | 0.73 | 0.27 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.18 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.26 | 0.37 |
| Interest Coverage Ratio (TTM) | 7.90 | 36.90 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADP and ZTO. 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.
ZTO
3.87%
Integrated Freight & Logistics Industry
- Max
- 6.46%
- Q3
- 2.50%
- Median
- 1.47%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.87%, ZTO offers a more attractive income stream than most of its peers in the Integrated Freight & Logistics industry, signaling a strong commitment to shareholder returns.
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.
ZTO
38.37%
Integrated Freight & Logistics Industry
- Max
- 92.20%
- Q3
- 43.42%
- Median
- 30.12%
- Q1
- 0.00%
- Min
- 0.00%
ZTO’s Dividend Payout Ratio of 38.37% is within the typical range for the Integrated Freight & Logistics industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADP | ZTO |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 3.87% |
| Dividend Payout Ratio (TTM) | 58.73% | 38.37% |
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.
ZTO
10.91
Integrated Freight & Logistics Industry
- Max
- 38.34
- Q3
- 27.03
- Median
- 21.39
- Q1
- 15.71
- Min
- 10.86
In the lower quartile for the Integrated Freight & Logistics industry, ZTO’s P/E Ratio of 10.91 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
ZTO
0.89
Integrated Freight & Logistics Industry
- Max
- 2.14
- Q3
- 1.72
- Median
- 1.10
- Q1
- 0.87
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Integrated Freight & Logistics 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.
ZTO
2.23
Integrated Freight & Logistics Industry
- Max
- 2.22
- Q3
- 1.42
- Median
- 0.94
- Q1
- 0.62
- Min
- 0.30
With a P/S Ratio of 2.23, ZTO trades at a valuation that eclipses even the highest in the Integrated Freight & Logistics 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.
ZTO
1.64
Integrated Freight & Logistics Industry
- Max
- 9.09
- Q3
- 5.80
- Median
- 3.47
- Q1
- 1.54
- Min
- 0.57
ZTO’s P/B Ratio of 1.64 is within the conventional range for the Integrated Freight & Logistics industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ADP | ZTO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 31.47 | 10.91 |
| Forward PEG Ratio (TTM) | 3.56 | 0.89 |
| Price-to-Sales Ratio (P/S, TTM) | 6.21 | 2.23 |
| Price-to-Book Ratio (P/B, TTM) | 21.49 | 1.64 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.77 | 11.05 |
| EV-to-EBITDA (TTM) | 20.57 | 8.39 |
| EV-to-Sales (TTM) | 6.29 | 2.33 |