Automatic Data Processing (NASDAQ:ADP) and CrowdGather (OTCMKTS:CRWG) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
This table compares Automatic Data Processing and CrowdGather’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Automatic Data Processing||16.52%||46.94%||5.85%|
This table compares Automatic Data Processing and CrowdGather’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Automatic Data Processing||$14.18 billion||5.22||$2.29 billion||$5.45||31.41|
Automatic Data Processing has higher revenue and earnings than CrowdGather.
Automatic Data Processing pays an annual dividend of $3.16 per share and has a dividend yield of 1.8%. CrowdGather does not pay a dividend. Automatic Data Processing pays out 58.0% of its earnings in the form of a dividend.
Risk & Volatility
Automatic Data Processing has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, CrowdGather has a beta of -2.61, indicating that its stock price is 361% less volatile than the S&P 500.
Insider and Institutional Ownership
80.6% of Automatic Data Processing shares are owned by institutional investors. 0.3% of Automatic Data Processing shares are owned by insiders. Comparatively, 36.4% of CrowdGather shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Automatic Data Processing and CrowdGather, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Automatic Data Processing||0||8||3||0||2.27|
Automatic Data Processing presently has a consensus price target of $179.63, suggesting a potential upside of 4.94%. Given Automatic Data Processing’s higher possible upside, research analysts plainly believe Automatic Data Processing is more favorable than CrowdGather.
Automatic Data Processing beats CrowdGather on 11 of the 13 factors compared between the two stocks.
About Automatic Data Processing
Automatic Data Processing, Inc. provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions. Its offerings include payroll, benefits administration, talent management, HR management, time and attendance management, insurance, retirement, and compliance services. This segment provides a range of solutions, which businesses of various types and sizes can use to activate talent, as well as recruit, pay, manage, and retain their workforce. It serves approximately 630,000 clients through its cloud-based strategic software as a service offering. The PEO Services segment provides HR outsourcing solutions through a co-employment model. This segment offers HR administration services, including employee recruitment, payroll and tax administration, time and attendance management, benefits administration, employee training and development, online HR management tools, and employee leave administration. It also provides employee benefits that enable eligible worksite employees with access to a 401(k) retirement savings plan, health savings accounts, flexible spending accounts, group term life and disability coverage, and an employee assistance program, as well as group health, dental, and vision coverage. In addition, this segment offers employer liability management services comprising workers' compensation program, unemployment claims management, safety compliance guidance and access to safety training, access to employment practices liability insurance, and guidance on compliance with the United States federal, state, and local employment laws and regulations. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
CrowdGather, Inc., a social networking Internet company, develops and hosts forum based Websites primarily in the United States. It monetizes a network of online forums and message boards designed to engage, provide information to, and build community around users. The company's forum community connects a network of people sharing their questions, expertise, and experiences. It also provides targeted advertising and marketing services for online customers. The company's portfolio includes approximately 350 domain names and 70 Web properties at various stages of development. CrowdGather, Inc. is headquartered in Calabasas, California.
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