Automatic Data Processing (NASDAQ:ADP) and ChinaCache International (OTCMKTS:CCIHY) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Analyst Ratings
This is a breakdown of recent recommendations for Automatic Data Processing and ChinaCache International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Automatic Data Processing | 4 | 9 | 5 | 0 | 2.06 |
ChinaCache International | 0 | 0 | 0 | 0 | N/A |
Automatic Data Processing presently has a consensus price target of $169.9375, indicating a potential downside of 11.44%. Given Automatic Data Processing's higher possible upside, equities research analysts plainly believe Automatic Data Processing is more favorable than ChinaCache International.
Profitability
This table compares Automatic Data Processing and ChinaCache International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Automatic Data Processing | 17.07% | 46.13% | 5.94% |
ChinaCache International | N/A | N/A | N/A |
Insider and Institutional Ownership
79.7% of Automatic Data Processing shares are held by institutional investors. 0.3% of Automatic Data Processing shares are held by insiders. Comparatively, 13.7% of ChinaCache International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Automatic Data Processing and ChinaCache International's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Automatic Data Processing | $14.59 billion | 5.63 | $2.47 billion | $5.92 | 32.41 |
ChinaCache International | $131.95 million | 0.01 | $-7,420,000.00 | N/A | N/A |
Automatic Data Processing has higher revenue and earnings than ChinaCache International.
Summary
Automatic Data Processing beats ChinaCache International on 9 of the 10 factors compared between the two stocks.