ADP vs. VRSK, SPGI, FISV, WM, TRI, SQ, RSG, TT, PAYX, and IQV
Should you be buying Automatic Data Processing stock or one of its competitors? The main competitors of Automatic Data Processing include Verisk Analytics (VRSK), S&P Global (SPGI), Fiserv (FISV), Waste Management (WM), Thomson Reuters (TRI), Block (SQ), Republic Services (RSG), Trane Technologies (TT), Paychex (PAYX), and IQVIA (IQV). These companies are all part of the "business services" sector.
Automatic Data Processing vs.
Verisk Analytics (NASDAQ:VRSK) and Automatic Data Processing (NASDAQ:ADP) are both large-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, community ranking, profitability, risk, media sentiment, earnings and valuation.
Verisk Analytics pays an annual dividend of $1.36 per share and has a dividend yield of 0.7%. Automatic Data Processing pays an annual dividend of $5.00 per share and has a dividend yield of 2.3%. Verisk Analytics pays out 22.8% of its earnings in the form of a dividend. Automatic Data Processing pays out 66.4% 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. Verisk Analytics has raised its dividend for 4 consecutive years and Automatic Data Processing has raised its dividend for 48 consecutive years. Automatic Data Processing is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
89.9% of Verisk Analytics shares are owned by institutional investors. Comparatively, 79.2% of Automatic Data Processing shares are owned by institutional investors. 1.8% of Verisk Analytics shares are owned by insiders. Comparatively, 0.3% of Automatic Data Processing shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Automatic Data Processing has higher revenue and earnings than Verisk Analytics. Automatic Data Processing is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.
Verisk Analytics has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Automatic Data Processing has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
Automatic Data Processing received 83 more outperform votes than Verisk Analytics when rated by MarketBeat users. However, 66.58% of users gave Verisk Analytics an outperform vote while only 60.27% of users gave Automatic Data Processing an outperform vote.
Verisk Analytics has a net margin of 32.92% compared to Automatic Data Processing's net margin of 18.24%. Automatic Data Processing's return on equity of 96.94% beat Verisk Analytics' return on equity.
Verisk Analytics presently has a consensus price target of $201.09, indicating a potential upside of 8.06%. Automatic Data Processing has a consensus price target of $246.10, indicating a potential upside of 12.84%. Given Automatic Data Processing's higher probable upside, analysts clearly believe Automatic Data Processing is more favorable than Verisk Analytics.
In the previous week, Verisk Analytics had 16 more articles in the media than Automatic Data Processing. MarketBeat recorded 27 mentions for Verisk Analytics and 11 mentions for Automatic Data Processing. Automatic Data Processing's average media sentiment score of 0.85 beat Verisk Analytics' score of 0.36 indicating that Automatic Data Processing is being referred to more favorably in the news media.
Summary
Verisk Analytics beats Automatic Data Processing on 12 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding ADP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Automatic Data Processing Competitors List
