Paychex (PAYX) Competitors

Automatic Data Processing (NASDAQ:ADP) and Paychex (NASDAQ:PAYX) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, media sentiment, analyst recommendations and institutional ownership.

Does the media refer more to ADP or PAYX?

In the previous week, Automatic Data Processing had 18 more articles in the media than Paychex. MarketBeat recorded 38 mentions for Automatic Data Processing and 20 mentions for Paychex. Automatic Data Processing's average media sentiment score of 1.60 beat Paychex's score of 1.42 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	36 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Paychex	17 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, ADP or PAYX?

Automatic Data Processing has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Paychex has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Do institutionals and insiders believe in ADP or PAYX?

80.0% of Automatic Data Processing shares are held by institutional investors. Comparatively, 83.5% of Paychex shares are held by institutional investors. 0.2% of Automatic Data Processing shares are held by company insiders. Comparatively, 11.4% of Paychex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Do analysts rate ADP or PAYX?

Automatic Data Processing currently has a consensus target price of $309.62, suggesting a potential upside of 0.32%. Paychex has a consensus target price of $150.20, suggesting a potential upside of 1.49%. Given Paychex's higher possible upside, analysts plainly believe Paychex 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)	9 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.15
Paychex	1 Sell rating(s)	10 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.91

Which has better valuation & earnings, ADP or PAYX?

Automatic Data Processing has higher revenue and earnings than Paychex. Automatic Data Processing is trading at a lower price-to-earnings ratio than Paychex, 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	$19.20B	6.52	$3.75B	$9.77	31.59
Paychex	$5.57B	9.57	$1.66B	$4.57	32.38

Is ADP or PAYX a better dividend stock?

Automatic Data Processing pays an annual dividend of $6.16 per share and has a dividend yield of 2.0%. Paychex pays an annual dividend of $4.32 per share and has a dividend yield of 2.9%. Automatic Data Processing pays out 63.1% of its earnings in the form of a dividend. Paychex pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Automatic Data Processing has increased its dividend for 49 consecutive years and Paychex has increased its dividend for 3 consecutive years.

Is ADP or PAYX more profitable?

Paychex has a net margin of 29.75% compared to Automatic Data Processing's net margin of 19.79%. Automatic Data Processing's return on equity of 77.33% beat Paychex's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	19.79%	77.33%	7.18%
Paychex	29.75%	45.01%	14.77%

Summary

Automatic Data Processing beats Paychex on 10 of the 19 factors compared between the two stocks.