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ADP vs PCTY
Which Stock Would AI Choose? Automatic Data Processing (ADP) vs. Paylocity Holding (PCTY) Stock Comparison
Key Takeaways
- Automatic Data Processing (ADP) operates as a large-scale provider of payroll and human capital management services, while Paylocity Holding (PCTY) focuses on cloud-based human resources and payroll software for mid-sized businesses.
- In recent market activity, both stocks have shown price gains amid broader sector dynamics, with ADP benefiting from its scale and employment data releases, and PCTY from recurring revenue growth and share repurchases.
- ADP maintains a significantly larger market capitalization and more consistent dividend history compared to the smaller, growth-oriented PCTY.
- Recent earnings expectations highlight ADP’s projected double-digit EPS growth ahead of its upcoming report, while PCTY has demonstrated double-digit revenue increases in its latest quarterly results.
- Sector exposure for both centers on human resources technology, though ADP offers broader stability and PCTY emphasizes software scalability and acquisitions.
- Market sentiment reflects analyst price target adjustments for both, with relative performance influenced by economic indicators such as employment trends and interest rate expectations.
Introduction
Automatic Data Processing (ADP) and Paylocity Holding (PCTY) represent two established players in the human resources and payroll technology sector. This comparison examines their business models, recent stock behavior, and key differentiators to assist traders and investors evaluating relative positioning within the same industry. Professionals seeking exposure to HR services may find the analysis relevant for assessing scale versus growth potential, while those monitoring employment-related indicators could note connections to broader economic data. The review maintains a focus on verifiable developments and observable metrics to support informed decision-making.
ADP Overview and Recent Performance
Automatic Data Processing (ADP) delivers comprehensive payroll processing, tax filing, and human capital management solutions to organizations worldwide. In recent weeks, the stock has exhibited resilience amid a moderating labor market, supported by its role in publishing the ADP National Employment Report, which has highlighted slowing private-sector job additions. Market activity reflects steady analyst attention ahead of the company’s fiscal fourth-quarter earnings, with expectations for revenue and earnings per share growth. Broader influences include macroeconomic factors such as employment trends and interest rate outlooks, contributing to measured price movements without extreme volatility relative to the sector.
PCTY Overview and Recent Performance
Paylocity Holding (PCTY) provides cloud-based payroll, human resources, and talent management software primarily to mid-market employers. Recent market activity shows the stock responding to quarterly results that featured double-digit revenue expansion and ongoing share repurchase activity. Developments include strategic acquisitions aimed at enhancing platform capabilities. Sentiment has been shaped by recurring revenue metrics and guidance updates, with price behavior reflecting both operational execution and external market conditions in the software and services space.
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Head-to-Head Comparison
Automatic Data Processing (ADP) and Paylocity Holding (PCTY) both serve the human resources technology space but differ in scale and focus. ADP’s established infrastructure supports a wider client base and generates substantial recurring revenue through payroll services, whereas PCTY emphasizes software-as-a-service delivery with higher growth potential tied to client acquisition and platform enhancements. Recent momentum for ADP has aligned with employment data releases, while PCTY’s performance has reflected software revenue trends and capital return initiatives. Risk factors include ADP’s sensitivity to labor market slowdowns and PCTY’s exposure to competitive pressures in cloud HR solutions. Sector exposure overlaps in payroll processing, yet ADP provides greater stability through diversification and dividend payouts, while PCTY offers trade-offs in higher valuation multiples alongside acquisition-driven expansion. Market sentiment remains balanced, with both companies subject to analyst revisions based on macroeconomic conditions.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings visibility, and relative positioning within the sector, Tickeron’s AI models currently assign a higher probabilistic weighting to Automatic Data Processing (ADP) for stability-oriented strategies. The larger scale and established cash flow characteristics of ADP appear to align with more consistent patterns in recent market data compared to the growth-variable profile of Paylocity Holding (PCTY). This assessment reflects probabilistic evaluation rather than certainty and should not be interpreted as investment guidance.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ADP is a Hold and PCTY is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ADP’s FA Score shows that 2 FA rating(s) are green whilePCTY’s FA Score has 0 green FA rating(s).
- ADP’s FA Score: 2 green, 3 red.
- PCTY’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ADP’s TA Score shows that 5 TA indicator(s) are bullish while PCTY’s TA Score has 6 bullish TA indicator(s).
- ADP’s TA Score: 5 bullish, 4 bearish.
- PCTY’s TA Score: 6 bullish, 4 bearish.
Price Growth
ADP (@Packaged Software) experienced а +6.55% price change this week, while PCTY (@Packaged Software) price change was +10.08% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was +3.35%. For the same industry, the average monthly price growth was -4.23%, and the average quarterly price growth was -5.33%.
Reported Earning Dates
ADP is expected to report earnings on Oct 28, 2026.
PCTY is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Packaged Software (+3.35% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
| ADP | PCTY | ADP / PCTY | |
| Capitalization | 106B | 7.38B | 1,436% |
| EBITDA | 6.7B | 477M | 1,405% |
| Gain YTD | 5.237 | -9.577 | -55% |
| P/E Ratio | 24.36 | 29.46 | 83% |
| Revenue | 21.6B | 1.73B | 1,251% |
| Total Cash | N/A | 300M | - |
| Total Debt | 4.3B | 135M | 3,181% |
ADP | PCTY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 29 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 10 Undervalued | 73 Overvalued | |
PROFIT vs RISK RATING 1..100 | 62 | 100 | |
SMR RATING 1..100 | 17 | 44 | |
PRICE GROWTH RATING 1..100 | 42 | 42 | |
P/E GROWTH RATING 1..100 | 76 | 87 | |
SEASONALITY SCORE 1..100 | 45 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ADP's Valuation (10) in the Data Processing Services industry is somewhat better than the same rating for PCTY (73) in the Packaged Software industry. This means that ADP’s stock grew somewhat faster than PCTY’s over the last 12 months.
ADP's Profit vs Risk Rating (62) in the Data Processing Services industry is somewhat better than the same rating for PCTY (100) in the Packaged Software industry. This means that ADP’s stock grew somewhat faster than PCTY’s over the last 12 months.
ADP's SMR Rating (17) in the Data Processing Services industry is in the same range as PCTY (44) in the Packaged Software industry. This means that ADP’s stock grew similarly to PCTY’s over the last 12 months.
ADP's Price Growth Rating (42) in the Data Processing Services industry is in the same range as PCTY (42) in the Packaged Software industry. This means that ADP’s stock grew similarly to PCTY’s over the last 12 months.
ADP's P/E Growth Rating (76) in the Data Processing Services industry is in the same range as PCTY (87) in the Packaged Software industry. This means that ADP’s stock grew similarly to PCTY’s over the last 12 months.
| ADP | PCTY | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 42% | 3 days ago 63% |
| Stochastic ODDS (%) | 3 days ago 45% | 3 days ago 73% |
| Momentum ODDS (%) | 3 days ago 52% | 3 days ago 56% |
| MACD ODDS (%) | 3 days ago 56% | 3 days ago 71% |
| TrendWeek ODDS (%) | 3 days ago 54% | 3 days ago 65% |
| TrendMonth ODDS (%) | 3 days ago 56% | 3 days ago 64% |
| Advances ODDS (%) | 5 days ago 51% | 5 days ago 63% |
| Declines ODDS (%) | 11 days ago 48% | 11 days ago 72% |
| BollingerBands ODDS (%) | 3 days ago 47% | 3 days ago 87% |
| Aroon ODDS (%) | 3 days ago 47% | 3 days ago 55% |
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ADP and
Correlation & Price change
A.I.dvisor indicates that over the last year, ADP has been closely correlated with PAYX. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if ADP jumps, then PAYX could also see price increases.
| Ticker / NAME | Correlation To ADP | 1D Price Change % | ||
|---|---|---|---|---|
| ADP | 100% | +0.98% | ||
| PAYX - ADP | 86% Closely correlated | +0.44% | ||
| PCTY - ADP | 74% Closely correlated | +0.87% | ||
| PAYC - ADP | 67% Closely correlated | +1.51% | ||
| SSNC - ADP | 64% Loosely correlated | -0.16% | ||
| MANH - ADP | 64% Loosely correlated | +0.20% | ||
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PCTY and
Correlation & Price change
A.I.dvisor indicates that over the last year, PCTY has been closely correlated with ADP. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if PCTY jumps, then ADP could also see price increases.
| Ticker / NAME | Correlation To PCTY | 1D Price Change % | ||
|---|---|---|---|---|
| PCTY | 100% | +0.87% | ||
| ADP - PCTY | 76% Closely correlated | +0.98% | ||
| PAYX - PCTY | 74% Closely correlated | +0.44% | ||
| WDAY - PCTY | 74% Closely correlated | +1.41% | ||
| CRM - PCTY | 66% Closely correlated | +1.83% | ||
| TEAM - PCTY | 66% Closely correlated | +2.95% | ||
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