Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Automatic Data Processing (NASDAQ:ADP) in comparison to its major competitors within the Professional Services industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company’s performance in 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 | 20.80 | 14.03 | 4.18 | 21.34% | $2.01 | $2.87 | 6.95% |
| Paychex Inc | 20.87 | 8.44 | 5.39 | 14.2% | $0.92 | $1.38 | 19.87% |
| Paycom Software Inc | 16.11 | 8 | 3.65 | 12.24% | $0.27 | $0.48 | 7.79% |
| Paylocity Holding Corp | 24.14 | 5.12 | 3.62 | 9.76% | $0.18 | $0.36 | 10.5% |
| Korn Ferry | 13.03 | 1.70 | 1.20 | 3.27% | $0.12 | $0.64 | 7.17% |
| Robert Half Inc | 20.14 | 2.18 | 0.49 | 1.1% | $0.06 | $0.48 | -3.83% |
| First Advantage Corp | 305.70 | 2.03 | 1.65 | 0.17% | $0.1 | $0.17 | 8.63% |
| Trinet Group Inc | 12.68 | 23.73 | 0.42 | 129.93% | $0.15 | $0.3 | -5.11% |
| Upwork Inc | 10.80 | 1.90 | 1.54 | 5.24% | $0.04 | $0.15 | 1.44% |
| Barrett Business Services Inc | 20.50 | 3.74 | 0.65 | -6.63% | $-0.0 | $0.04 | 4.94% |
| Kforce Inc | 20.63 | 6.18 | 0.54 | 6.55% | $0.01 | $0.09 | 0.1% |
| Fiverr International Ltd | 13.92 | 0.92 | 0.92 | 2.06% | $0.01 | $0.09 | -1.58% |
| Mastech Digital Inc | 32.79 | 0.82 | 0.41 | 0.29% | $0.0 | $0.01 | -14.97% |
| Average | 42.61 | 5.4 | 1.71 | 14.85% | $0.15 | $0.35 | 2.91% |
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