Stocks analysis

ACN vs ADP Stock Comparison

Scores Breakdown

Metric ACN ADP
📈 Growth 28/30 26/30
💰 Profitability 16/20 18/20
🏦 Financial Health 18/20 12/20
💵 Valuation 15/20 14/20
⚠️ Risk (lower is better) 5/10 6/10
Overall Score 82/100 74/100

Side-by-Side Summaries

ACN Analysis ADP Analysis

📈 Growth & Financial Trajectory

Over the eight quarters, Revenues rose from $17.69B to $18.72B, while Net Income increased from $1.79B to $2.34B, signaling a positive trajectory with modest top-line growth and stronger bottom-line advancement. The trend shows resilience amid quarterly fluctuations, with mid-single-digit revenue growth and improving profitability.

💰 Margins & Cash Flow

Gross Margin sits in the low 30s (about 32%–33%), and Operating Margin runs in the mid-teens, supporting the Net Income growth. Cash flow is robust: Net Cash Flow From Operating Activities around $3.0–3.8B per quarter; Net Cash Flow overall was positive in several periods, while Net Cash Flow From Investing Activities and Net Cash Flow From Financing Activities show volatility.

🛡️ Balance Sheet & Liquidity

Liquidity remains solid with Current Assets around $25–29B versus Current Liabilities around $18–22B (current ratio near 1.3x). Equity sits near $31–33B, and overall liabilities are manageable relative to assets.

⚠️ Key Drivers & Risks

  • Drivers: AI-enabled transformation demand and a broad, diversified client base across industries.
  • Risks: Economic cyclicality in IT budgets and valuation sensitivity to growth assumptions.

📈 Growth & Financial Trajectory

Over the 8 quarters, revenues rose from about $4.77B (2024 Q4) to about $5.36B (2026 Q4). Net income progressed from roughly $0.83B to $1.06B, a 28% increase, signaling earnings leverage as the top line expanded. The quarterly path fluctuated—peaking near $5.55B in 2025 Q3/Q4 before settling in the $5.2–$5.36B range—yet the trend remains clearly positive. The Gross Margin held in the high-40s to mid-50s, while Operating Margin stayed in the low- to mid-20s, underpinning a solid profitability trajectory.

💰 Margins & Cash Flow

  • Gross Margin: roughly 46–56% across periods, with a peak around 56%.
  • Operating Margin: generally 20–24%, supporting meaningful operating leverage.
  • Net cash flow from operating activities was consistently positive in most quarters, while investing cash flow was mostly modestly negative and financing activity contributed steady liquidity.

🛡️ Balance Sheet & Liquidity

  • Current assets ($52B) vs current liabilities ($50B) yields a tight but adequate liquidity cushion.
  • Liabilities ($57B) exceed equity ($6B), indicating leverage, but assets and ongoing operating cash flows provide resilience. The balance sheet remains stable with a solid asset base.

⚠️ Key Drivers & Risks

  • Drivers: Recurring payroll/data-processing demand; large installed base and stable cash flows.
  • Risks: Valuation sensitivity to growth momentum; exposure to regulatory shifts or macro cycles.