Automatic Data Processing (ADP) Competitors

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

Does the media refer more to FI or ADP?

In the previous week, Fiserv had 33 more articles in the media than Automatic Data Processing. MarketBeat recorded 75 mentions for Fiserv and 42 mentions for Automatic Data Processing. Automatic Data Processing's average media sentiment score of 1.43 beat Fiserv's score of 0.88 indicating that Automatic Data Processing is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Fiserv	44 Very Positive mention(s)	6 Positive mention(s)	17 Neutral mention(s)	0 Negative mention(s)	3 Very Negative mention(s)	Positive
Automatic Data Processing	34 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals believe in FI or ADP?

91.0% of Fiserv shares are owned by institutional investors. Comparatively, 80.0% of Automatic Data Processing shares are owned by institutional investors. 0.8% of Fiserv shares are owned by company insiders. Comparatively, 0.2% of Automatic Data Processing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Is FI or ADP a better dividend stock?

Fiserv pays an annual dividend of $0.30 per share and has a dividend yield of 0.1%. Automatic Data Processing pays an annual dividend of $6.16 per share and has a dividend yield of 1.9%. Fiserv pays out 5.6% of its earnings in the form of a dividend. Automatic Data Processing pays out 64.2% 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.

Is FI or ADP 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
Fiserv	15.31%	17.93%	5.97%
Automatic Data Processing	19.76%	80.86%	6.83%

Which has higher earnings & valuation, FI or ADP?

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
Fiserv	$383.42M	347.90	$3.13B	$5.39	44.09
Automatic Data Processing	$18.78B	6.91	$3.75B	$9.59	33.23

Do analysts rate FI or ADP?

Fiserv currently has a consensus target price of $239.83, indicating a potential upside of 0.92%. Automatic Data Processing has a consensus target price of $293.55, indicating a potential downside of 7.88%. Given Fiserv's stronger consensus rating and higher possible upside, analysts clearly believe Fiserv is more favorable than Automatic Data Processing.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiserv	0 Sell rating(s)	2 Hold rating(s)	21 Buy rating(s)	2 Strong Buy rating(s)	3.00
Automatic Data Processing	2 Sell rating(s)	7 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.00

Which has more volatility and risk, FI or ADP?

Fiserv has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Automatic Data Processing has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Does the MarketBeat Community prefer FI or ADP?

Fiserv received 158 more outperform votes than Automatic Data Processing when rated by MarketBeat users. Likewise, 63.72% of users gave Fiserv an outperform vote while only 58.17% of users gave Automatic Data Processing an outperform vote.

Company	Underperform	Outperform
Fiserv	Outperform Votes 799 63.72%	Underperform Votes 455 36.28%
Automatic Data Processing	Outperform Votes 641 58.17%	Underperform Votes 461 41.83%

Summary

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