Automatic Data Processing vs DXC Technology
ADP and DXC side by side, both in computer programming, data processing, and other computer related services. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.
How ADP and DXC compare
Automatic Data Processing is the larger company, worth 49 times as much as DXC Technology ($117B against $2.4B).
On earnings, DXC Technology is cheaper: it trades at 20.5× trailing earnings, against 26.0× for Automatic Data Processing.
Automatic Data Processing grew revenue faster over the last twelve months (6.5% versus −2.4% for DXC Technology).
Automatic Data Processing keeps more of each dollar of sales as profit, with a net margin of 20.3% compared with 0.99% at DXC Technology.
Automatic Data Processing pays a dividend yielding 2.3%; DXC Technology does not pay one.
Automatic Data Processing scores higher on the StockData Score (14 against 10 for DXC Technology), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.
Key numbers
A dot marks the better figure where higher or lower is clearly better.
| Metric | ADP | DXC |
|---|---|---|
| Size and price | ||
| Market cap | $117B | $2.4B |
| Share price | $293.84 | $14.98 |
| Change, 1 year | 12.5% | 13.7% |
| Change, 5 years | 28.0% | −56.4% |
| Beta (5Y) | 0.73 | 1.13 |
| Employees | 67K | 115K |
| StockData Score | ||
| Total score | 14 (better) | 10 |
| Valuation score | 2 | 5 (better) |
| Growth score | 2 (better) | 0 |
| Performance score | 5 (better) | 3 |
| Health score | 2 | 2 |
| Dividend score | 3 (better) | 0 |
| Valuation | ||
| P/E | 26.0× | 20.5× (better) |
| P/S | 5.2× | 0.2× (better) |
| P/B | 22.9× | 0.8× (better) |
| EV/EBITDA | 17.0× | 2.1× (better) |
| P/FCF | – | 1.9× |
| PEG | 2.59 | – |
| FCF yield | – | 52.3% |
| Fair value | $287.82 | $96.17 |
| Margin of safety | −2.1% | 84.4% (better) |
| Growth | ||
| Revenue growth (TTM) | 6.5% (better) | −2.4% |
| Revenue growth, 5Y average | 7.9% (better) | −6.5% |
| Net income growth (TTM) | 9.4% (better) | −67.3% |
| EPS growth (TTM) | 11.4% (better) | −64.4% |
| EPS growth, 5Y average | 12.5% | – |
| Profitability | ||
| Gross margin | 46.6% (better) | 23.0% |
| Operating margin | – | 7.2% |
| Net margin | 20.3% (better) | 0.99% |
| FCF margin | – | 10.0% |
| Return on equity | 78.9% (better) | 4.0% |
| Return on invested capital | – | 9.0% |
| Financial health | ||
| Debt / equity | 0.98 (better) | 1.15 |
| Net debt / EBITDA | 0.24 (better) | 0.76 |
| Interest coverage | – | 4.2× |
| Current ratio | 1.03 | 1.41 (better) |
| Altman Z-score | 2.18 (better) | 1.21 |
| Piotroski F-score | 7 (better) | 6 |
| Dividends and buybacks | ||
| Dividend yield | 2.3% | – |
| Payout ratio | 59.1% | – |
| Years of dividend growth | 17 | – |
| Dividend growth, 5Y average | 12.4% | – |
| Buyback yield | 2.1% | 11.4% (better) |
| Shareholder yield | 4.4% | 11.4% (better) |
| Ownership | ||
| Held by institutions | 90.6% | 113% |
| Held by insiders | 0.18% | 3.0% |
| Insider net buying, 12 months | −$13.1M | $462K (better) |
| Superinvestors holding | 2 | – |
| Short interest, % of float | 2.8% | 16.5% |
Go deeper
- ADP stock overview
- ADP income statement
- ADP valuation and score
- DXC stock overview
- DXC income statement
- DXC valuation and score
Other comparisons
For information only, not investment advice. Check the source filings before relying on any figure.