A vs ADP Stock Comparison

Scores Breakdown

Metric	A	ADP
📈 Growth	18/30	22/30
💰 Profitability	16/20	18/20
🏦 Financial Health	7/20	9/20
💵 Valuation	9/20	14/20
⚠️ Risk (lower is better)	7/10	6/10
Overall Score	53/100	67/100

Side-by-Side Summaries

A Analysis	ADP Analysis
📈 Growth & Financial Trajectory Over eight quarters, Revenues rose from about $1.66B to $1.84B, a positive trend, with a mid-2025 dip. Net income fluctuated from $308M–$434M, ending near $339M in 2026 Q2. The sequence shows top-line resilience but earnings volatility, implying improving mix or cost management but not a steady uplift in profitability. 💰 Margins & Cash Flow Gross Margin is generally in the mid-50s percentile, peaking around 63% in 2024 Q2 and typical ~50–55% in other quarters. Operating Margin has run in the high-teens to low-20s percent range on Revenues of ~$1.6–$1.8B. Operating cash flow remains positive across quarters (roughly $0.27–$0.55B), while investing cash flow is negative (capital outlays), and financing cash flow is often negative, reflecting debt/return actions. 🛡️ Balance Sheet & Liquidity Total Assets (~~$11–$13B) exceed Liabilities (~~$4.8–$6B) with Equity frequently negative, signaling balance-sheet rehabilitation needs. Current assets vs current liabilities suggests solid liquidity (working capital positive); long-term debt remains a meaningful load but generally manageable within cash flows. ⚠️ Key Drivers & Risks Drivers: Life sciences capex & instrument upgrades; continued demand for laboratory testing and automation. Risks: Earnings volatility from cyclic lab-spend; structural negative equity raises valuation sensitivity and balance-sheet risk.	📈 Growth & Financial Trajectory Across eight quarters, ADP's revenue hovered around $5.25B–$5.56B, finishing at about $5.359B in the latest quarter, a modest gain from the start. Net income rose from roughly $956.3M to $1.062B, an ~11% increase. There was a mid-period dip in 2025 Q4, but the longer trajectory remains stable-to-up with solid profitability. 💰 Margins & Cash Flow Gross Margin fluctuated roughly 45%–52%, averaging around the mid-40s to high-40s. Operating Margin consistently around 23% in recent quarters. Net Margin near 19–20%. Operating cash flow remains solid around $1.0–$1.4B per quarter; net cash flow is affected by financing activity in some periods, with a large financing inflow in the latest quarter. 🛡️ Balance Sheet & Liquidity Total assets generally in the mid-to-high $50B range; liabilities near $50–$60B and equity around $4–$6B, yielding a modest liquidity buffer as current assets roughly equal current liabilities. Leverage is elevated but cash generation is steady. ⚠️ Key Drivers & Risks Drivers: Recurring payroll/data processing services; broad client base and scale advantages. Risks: Regulatory/macro shifts and reliance on financing activity in some periods, creating sensitivity to funding costs and leverage.

A Analysis

ADP Analysis

📈 Growth & Financial Trajectory

Over eight quarters, Revenues rose from about $1.66B to $1.84B, a positive trend, with a mid-2025 dip. Net income fluctuated from $308M–$434M, ending near $339M in 2026 Q2. The sequence shows top-line resilience but earnings volatility, implying improving mix or cost management but not a steady uplift in profitability.

💰 Margins & Cash Flow

Gross Margin is generally in the mid-50s percentile, peaking around 63% in 2024 Q2 and typical ~50–55% in other quarters.
Operating Margin has run in the high-teens to low-20s percent range on Revenues of ~$1.6–$1.8B.
Operating cash flow remains positive across quarters (roughly $0.27–$0.55B), while investing cash flow is negative (capital outlays), and financing cash flow is often negative, reflecting debt/return actions.

🛡️ Balance Sheet & Liquidity

Total Assets (~~$11–$13B) exceed Liabilities (~~$4.8–$6B) with Equity frequently negative, signaling balance-sheet rehabilitation needs. Current assets vs current liabilities suggests solid liquidity (working capital positive); long-term debt remains a meaningful load but generally manageable within cash flows.

⚠️ Key Drivers & Risks

Drivers: Life sciences capex & instrument upgrades; continued demand for laboratory testing and automation.
Risks: Earnings volatility from cyclic lab-spend; structural negative equity raises valuation sensitivity and balance-sheet risk.

📈 Growth & Financial Trajectory

Across eight quarters, ADP's revenue hovered around $5.25B–$5.56B, finishing at about $5.359B in the latest quarter, a modest gain from the start. Net income rose from roughly $956.3M to $1.062B, an ~11% increase. There was a mid-period dip in 2025 Q4, but the longer trajectory remains stable-to-up with solid profitability.

💰 Margins & Cash Flow

Gross Margin fluctuated roughly 45%–52%, averaging around the mid-40s to high-40s.
Operating Margin consistently around 23% in recent quarters.
Net Margin near 19–20%.
Operating cash flow remains solid around $1.0–$1.4B per quarter; net cash flow is affected by financing activity in some periods, with a large financing inflow in the latest quarter.

🛡️ Balance Sheet & Liquidity

Total assets generally in the mid-to-high $50B range; liabilities near $50–$60B and equity around $4–$6B, yielding a modest liquidity buffer as current assets roughly equal current liabilities. Leverage is elevated but cash generation is steady.

⚠️ Key Drivers & Risks

Drivers: Recurring payroll/data processing services; broad client base and scale advantages.
Risks: Regulatory/macro shifts and reliance on financing activity in some periods, creating sensitivity to funding costs and leverage.

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