In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Automatic Data Processing (NASDAQ:ADP) in relation to its major competitors in the Professional Services industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company’s performance within the industry.
Automatic Data Processing Background
ADP is a global technology company providing cloud-based human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. Additionally, ADP provides human resources outsourcing solutions that permit customers to offload some of their traditional HR tasks. The company operates through two segments: employer services and professional employer organization services. Employer services consist of the company’s HCM products as well as a la carte HRO solutions. PEO services contain ADP’s comprehensive HRO solution, where it acts as a co-employer with its customer. As of fiscal 2025, ADP serves over 1.1 million clients and pays over 42 million workers across 140 countries.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Automatic Data Processing Inc | 20.05 | 13.14 | 4 | 16.64% | $1.65 | $2.47 | 6.16% |
| Paychex Inc | 20.94 | 8.56 | 5.55 | 10.07% | $0.7 | $1.15 | 18.28% |
| Paycom Software Inc | 15.45 | 3.83 | 3.41 | 6.61% | $0.21 | $0.46 | 10.2% |
| Paylocity Holding Corp | 26.47 | 5.52 | 3.75 | 4.56% | $0.1 | $0.28 | 10.39% |
| Korn Ferry | 12.25 | 1.60 | 1.13 | 3.27% | $0.12 | $0.64 | 7.17% |
| Robert Half Inc | 17.51 | 1.85 | 0.43 | 2.48% | $0.04 | $0.49 | -5.79% |
| Trinet Group Inc | 11.82 | 33.14 | 0.37 | -1.22% | $0.03 | $0.17 | -2.27% |
| Upwork Inc | 13.42 | 2.33 | 2.01 | 2.48% | $0.04 | $0.15 | 3.62% |
| Barrett Business Services Inc | 13.43 | 2.92 | 0.59 | 6.82% | $0.02 | $0.07 | 5.35% |
| Kforce Inc | 13.46 | 3.86 | 0.35 | 4.02% | $0.01 | $0.09 | -3.42% |
| Fiverr International Ltd | 18.30 | 0.89 | 0.88 | 2.83% | $0.04 | $0.09 | 3.38% |
| Average | 16.3 | 6.45 | 1.85 | 4.19% | $0.13 | $0.36 | 4.69% |
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