Automatic Data Processing (ADP) Competitors

Automatic Data Processing (NASDAQ:ADP) and Fiserv (NYSE:FI) are both large-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their community ranking, institutional ownership, profitability, media sentiment, earnings, risk, dividends, valuation and analyst recommendations.

Is ADP or FI a better dividend stock?

Automatic Data Processing pays an annual dividend of $6.16 per share and has a dividend yield of 1.9%. Fiserv pays an annual dividend of $0.30 per share and has a dividend yield of 0.2%. Automatic Data Processing pays out 63.1% of its earnings in the form of a dividend. Fiserv pays out 5.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Automatic Data Processing has increased its dividend for 49 consecutive years. Automatic Data Processing is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media favor ADP or FI?

In the previous week, Fiserv had 38 more articles in the media than Automatic Data Processing. MarketBeat recorded 73 mentions for Fiserv and 35 mentions for Automatic Data Processing. Automatic Data Processing's average media sentiment score of 1.29 beat Fiserv's score of 0.95 indicating that Automatic Data Processing is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Automatic Data Processing	26 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Fiserv	42 Very Positive mention(s)	11 Positive mention(s)	7 Neutral mention(s)	6 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals & insiders have more ownership in ADP or FI?

80.0% of Automatic Data Processing shares are held by institutional investors. Comparatively, 91.0% of Fiserv shares are held by institutional investors. 0.2% of Automatic Data Processing shares are held by insiders. Comparatively, 0.7% of Fiserv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Is ADP or FI more profitable?

Automatic Data Processing has a net margin of 19.76% compared to Fiserv's net margin of 15.31%. Automatic Data Processing's return on equity of 80.86% beat Fiserv's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	19.76%	80.86%	6.83%
Fiserv	15.31%	17.93%	5.97%

Which has preferable valuation and earnings, ADP or FI?

Automatic Data Processing has higher revenue and earnings than Fiserv. Fiserv is trading at a lower price-to-earnings ratio than Automatic Data Processing, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Automatic Data Processing	$19.04B	6.85	$3.75B	$9.77	32.90
Fiserv	$383.42M	235.55	$3.13B	$5.66	28.78

Do analysts rate ADP or FI?

Automatic Data Processing currently has a consensus price target of $305.64, indicating a potential downside of 4.91%. Fiserv has a consensus price target of $224.20, indicating a potential upside of 37.64%. Given Fiserv's stronger consensus rating and higher probable upside, analysts plainly believe Fiserv is more favorable than Automatic Data Processing.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Automatic Data Processing	1 Sell rating(s)	7 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.18
Fiserv	2 Sell rating(s)	1 Hold rating(s)	21 Buy rating(s)	2 Strong Buy rating(s)	2.88

Does the MarketBeat Community favor ADP or FI?

Fiserv received 169 more outperform votes than Automatic Data Processing when rated by MarketBeat users. Likewise, 63.81% of users gave Fiserv an outperform vote while only 57.94% of users gave Automatic Data Processing an outperform vote.

Company	Underperform	Outperform
Automatic Data Processing	Outperform Votes 642 57.94%	Underperform Votes 466 42.06%
Fiserv	Outperform Votes 811 63.81%	Underperform Votes 460 36.19%

Which has more volatility & risk, ADP or FI?

Automatic Data Processing has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Summary

Fiserv beats Automatic Data Processing on 12 of the 22 factors compared between the two stocks.