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ADP vs PCTY
Which Stock Would AI Choose? Automatic Data Processing (ADP) vs. Paylocity (PCTY) Stock Comparison
Key Takeaways
- Automatic Data Processing (ADP) operates as a large-scale provider of human capital management (HCM) solutions with broader enterprise exposure, while Paylocity (PCTY) focuses on cloud-based platforms primarily for small- and mid-sized businesses.
- In recent market activity, ADP has shown relatively stable performance with modest year-to-date declines compared to PCTY's sharper pullback amid broader sector pressures.
- ADP maintains a dividend yield and lower volatility profile, appealing to income-oriented investors, whereas PCTY offers no dividend but carries higher growth-oriented risk-reward characteristics.
- Both companies operate in the competitive HCM and payroll sector, with ADP benefiting from scale and recurring revenue stability and PCTY emphasizing integrated HR, finance, and spend management tools.
- Analyst sentiment reflects a hold consensus for ADP ahead of its fiscal Q4 earnings and a buy rating for PCTY, highlighting differing market positioning and momentum factors.
- Relative performance data indicate ADP has outperformed PCTY on a trailing twelve-month basis, though both have trailed broader market indices in certain periods.
Introduction
This comparison examines ADP and PCTY to provide traders and investors with a clear view of how these two human capital management stocks stack up in the current environment. The analysis focuses on business models, recent price behavior, sector dynamics, and observable performance metrics. Institutional and individual investors seeking exposure to the payroll and HCM space may find this relative assessment useful for evaluating portfolio allocation decisions based on stability versus growth profiles.
ADP Overview and Recent Performance
Automatic Data Processing (ADP) delivers comprehensive cloud-based human capital management solutions, including payroll, HR, talent, time, tax, and benefits administration, serving a global client base through its Employer Services and Professional Employer Organization segments. In recent market activity, the stock has exhibited measured movements amid broader economic signals, with year-to-date performance reflecting modest declines relative to the S&P 500. Upcoming fiscal fourth-quarter earnings scheduled for late July have contributed to cautious sentiment, while analyst price target adjustments reflect ongoing evaluation of recurring revenue trends and operational resilience. ADP's established scale and dividend distribution have supported a steadier trading pattern compared to smaller peers during periods of market uncertainty.
PCTY Overview and Recent Performance
Paylocity Holding Corporation (PCTY) provides cloud-based human capital management, payroll, spend management, and related software solutions, with a primary emphasis on small- to mid-sized organizations. Recent market activity has featured notable volatility, including a significant year-to-date decline followed by intermittent rebounds driven by valuation discussions and quarterly results. The stock's performance has been influenced by insider activity and broader software sector dynamics, with analysts maintaining a generally positive rating despite the drawdown from prior highs. PCTY's focus on integrated platforms has sustained interest among growth-oriented market participants even as overall momentum has lagged larger competitors.
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Head-to-Head Comparison
Automatic Data Processing (ADP) and Paylocity (PCTY) both operate within the human capital management sector but differ markedly in scale and client focus. ADP’s established enterprise-oriented model supports greater revenue predictability and a dividend payout, contrasting with PCTY’s emphasis on agile, integrated software for smaller clients that carries higher sensitivity to growth cycles. Recent momentum has favored ADP’s relative stability, while PCTY has experienced sharper price swings tied to valuation reassessments. Risk factors include ADP’s exposure to large-client retention and PCTY’s dependence on smaller-business adoption trends. Market sentiment currently reflects measured optimism for ADP’s earnings visibility versus PCTY’s potential for recovery-driven upside, creating distinct trade-offs for investors balancing defensive characteristics against expansion opportunities.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings visibility, and relative positioning, Tickeron’s AI would currently assign a higher probabilistic preference to Automatic Data Processing (ADP) over Paylocity (PCTY). ADP’s larger scale, recurring revenue profile, and more contained recent volatility provide a steadier foundation in the present environment, though outcomes remain subject to upcoming earnings and broader market shifts.
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 StrongBuy and PCTY is a StrongBuy.
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 4 TA indicator(s) are bullish while PCTY’s TA Score has 6 bullish TA indicator(s).
- ADP’s TA Score: 4 bullish, 4 bearish.
- PCTY’s TA Score: 6 bullish, 4 bearish.
Price Growth
ADP (@Packaged Software) experienced а -0.14% price change this week, while PCTY (@Packaged Software) price change was +2.95% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was +7.10%. For the same industry, the average monthly price growth was +10.34%, and the average quarterly price growth was -5.84%.
Reported Earning Dates
ADP is expected to report earnings on Aug 05, 2026.
PCTY is expected to report earnings on Jul 30, 2026.
Industries' Descriptions
@Packaged Software (+7.10% 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 | 96.7B | 6.35B | 1,524% |
| EBITDA | 6.7B | 477M | 1,405% |
| Gain YTD | -4.455 | -22.295 | 20% |
| P/E Ratio | 22.57 | 25.32 | 89% |
| 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 | 18 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 71 | 100 | |
SMR RATING 1..100 | 16 | 43 | |
PRICE GROWTH RATING 1..100 | 48 | 55 | |
P/E GROWTH RATING 1..100 | 79 | 90 | |
SEASONALITY SCORE 1..100 | 85 | 90 |
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 (9) in the Data Processing Services industry is somewhat better than the same rating for PCTY (69) 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 (71) in the Data Processing Services industry is in the same range as PCTY (100) in the Packaged Software industry. This means that ADP’s stock grew similarly to PCTY’s over the last 12 months.
ADP's SMR Rating (16) in the Data Processing Services industry is in the same range as PCTY (43) 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 (48) in the Data Processing Services industry is in the same range as PCTY (55) 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 (79) in the Data Processing Services industry is in the same range as PCTY (90) 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 (%) | 4 days ago 49% | 4 days ago 66% |
| Stochastic ODDS (%) | 4 days ago 40% | 4 days ago 71% |
| Momentum ODDS (%) | 4 days ago 51% | 4 days ago 80% |
| MACD ODDS (%) | 4 days ago 50% | 4 days ago 83% |
| TrendWeek ODDS (%) | 4 days ago 51% | 4 days ago 65% |
| TrendMonth ODDS (%) | 4 days ago 54% | 4 days ago 64% |
| Advances ODDS (%) | 12 days ago 52% | 4 days ago 64% |
| Declines ODDS (%) | 5 days ago 48% | 28 days ago 71% |
| BollingerBands ODDS (%) | 4 days ago 47% | 4 days ago 85% |
| Aroon ODDS (%) | 4 days ago 41% | 4 days ago 71% |
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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% | +0.27% | ||
| PAYX - ADP | 86% Closely correlated | +1.20% | ||
| PCTY - ADP | 73% Closely correlated | +1.61% | ||
| PAYC - ADP | 67% Closely correlated | -0.34% | ||
| SSNC - ADP | 63% Loosely correlated | -0.16% | ||
| MANH - ADP | 62% Loosely correlated | -1.10% | ||
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PCTY and
Correlation & Price change
A.I.dvisor indicates that over the last year, PCTY has been closely correlated with PAYC. 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 PAYC could also see price increases.
| Ticker / NAME | Correlation To PCTY | 1D Price Change % | ||
|---|---|---|---|---|
| PCTY | 100% | +1.61% | ||
| PAYC - PCTY | 76% Closely correlated | -0.34% | ||
| ADP - PCTY | 73% Closely correlated | +0.27% | ||
| PAYX - PCTY | 71% Closely correlated | +1.20% | ||
| WDAY - PCTY | 71% Closely correlated | +0.44% | ||
| MANH - PCTY | 66% Loosely correlated | -1.10% | ||
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