Automatic Data Processing (ADP) Competitors

Automatic Data Processing (NASDAQ:ADP) and Fiserv (NYSE:FI) are both large-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, community ranking, earnings, valuation, media sentiment, profitability, analyst recommendations and dividends.

Does the media favor ADP or FI?

In the previous week, Fiserv had 11 more articles in the media than Automatic Data Processing. MarketBeat recorded 66 mentions for Fiserv and 55 mentions for Automatic Data Processing. Automatic Data Processing's average media sentiment score of 1.35 beat Fiserv's score of 1.22 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	49 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Fiserv	49 Very Positive mention(s)	2 Positive mention(s)	13 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Do insiders & institutionals have more ownership in ADP or FI?

80.0% of Automatic Data Processing shares are owned by institutional investors. Comparatively, 91.0% of Fiserv shares are owned by institutional investors. 0.2% of Automatic Data Processing shares are owned by insiders. Comparatively, 0.8% of Fiserv shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Is ADP or FI more profitable?

Automatic Data Processing has a net margin of 19.76% compared to Fiserv's net margin of 15.31%. Automatic Data Processing's return on equity of 80.86% beat Fiserv's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	19.76%	80.86%	6.83%
Fiserv	15.31%	17.93%	5.97%

Do analysts recommend ADP or FI?

Automatic Data Processing currently has a consensus price target of $302.30, suggesting a potential downside of 1.60%. Fiserv has a consensus price target of $243.64, suggesting a potential upside of 7.62%. Given Fiserv's stronger consensus rating and higher probable upside, analysts plainly believe Fiserv 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)	7 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.10
Fiserv	0 Sell rating(s)	1 Hold rating(s)	21 Buy rating(s)	2 Strong Buy rating(s)	3.04

Does the MarketBeat Community prefer ADP or FI?

Fiserv received 159 more outperform votes than Automatic Data Processing when rated by MarketBeat users. Likewise, 63.75% of users gave Fiserv an outperform vote while only 58.11% of users gave Automatic Data Processing an outperform vote.

Company	Underperform	Outperform
Automatic Data Processing	Outperform Votes 641 58.11%	Underperform Votes 462 41.89%
Fiserv	Outperform Votes 800 63.75%	Underperform Votes 455 36.25%

Is ADP or FI a better dividend stock?

Automatic Data Processing pays an annual dividend of $6.16 per share and has a dividend yield of 2.0%. Fiserv pays an annual dividend of $0.30 per share and has a dividend yield of 0.1%. Automatic Data Processing pays out 64.2% of its earnings in the form of a dividend. Fiserv pays out 5.6% 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. Automatic Data Processing has increased its dividend for 49 consecutive years. Automatic Data Processing is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has more risk & volatility, ADP or FI?

Automatic Data Processing has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Which has preferable earnings and valuation, ADP or FI?

Automatic Data Processing has higher revenue and earnings than Fiserv. Automatic Data Processing is trading at a lower price-to-earnings ratio than Fiserv, 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	$18.78B	6.67	$3.75B	$9.59	32.04
Fiserv	$383.42M	331.42	$3.13B	$5.39	42.00

Summary

Fiserv beats Automatic Data Processing on 13 of the 22 factors compared between the two stocks.