Automatic Data Processing (ADP) Competitors

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

Is ADP or MA a better dividend stock?

Automatic Data Processing pays an annual dividend of $6.16 per share and has a dividend yield of 2.1%. Mastercard pays an annual dividend of $3.04 per share and has a dividend yield of 0.6%. Automatic Data Processing pays out 64.2% of its earnings in the form of a dividend. Mastercard pays out 21.9% 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 raised its dividend for 49 consecutive years and Mastercard has raised its dividend for 13 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 MA?

Automatic Data Processing has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Do analysts rate ADP or MA?

Automatic Data Processing currently has a consensus target price of $302.30, suggesting a potential upside of 2.84%. Mastercard has a consensus target price of $607.96, suggesting a potential upside of 14.69%. Given Mastercard's stronger consensus rating and higher probable upside, analysts clearly believe Mastercard 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
Mastercard	0 Sell rating(s)	6 Hold rating(s)	23 Buy rating(s)	2 Strong Buy rating(s)	2.87

Do insiders & institutionals hold more shares of ADP or MA?

80.0% of Automatic Data Processing shares are held by institutional investors. Comparatively, 97.3% of Mastercard shares are held by institutional investors. 0.2% of Automatic Data Processing shares are held by insiders. Comparatively, 0.1% of Mastercard shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Does the media prefer ADP or MA?

In the previous week, Mastercard had 59 more articles in the media than Automatic Data Processing. MarketBeat recorded 91 mentions for Mastercard and 32 mentions for Automatic Data Processing. Automatic Data Processing's average media sentiment score of 1.71 beat Mastercard's score of 1.38 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	31 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Mastercard	72 Very Positive mention(s)	4 Positive mention(s)	11 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ADP or MA more profitable?

Mastercard has a net margin of 45.71% compared to Automatic Data Processing's net margin of 19.76%. Mastercard's return on equity of 188.47% beat Automatic Data Processing's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	19.76%	80.86%	6.83%
Mastercard	45.71%	188.47%	30.05%

Which has stronger earnings and valuation, ADP or MA?

Mastercard has higher revenue and earnings than Automatic Data Processing. Automatic Data Processing is trading at a lower price-to-earnings ratio than Mastercard, 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	6.38	$3.75B	$9.59	30.65
Mastercard	$28.17B	17.16	$12.87B	$13.89	38.16

Does the MarketBeat Community believe in ADP or MA?

Mastercard received 914 more outperform votes than Automatic Data Processing when rated by MarketBeat users. Likewise, 73.07% of users gave Mastercard 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%
Mastercard	Outperform Votes 1555 73.07%	Underperform Votes 573 26.93%

Summary

Mastercard beats Automatic Data Processing on 18 of the 22 factors compared between the two stocks.