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ADP vs PCTY
Which Stock Would AI Choose? Automatic Data Processing (ADP) vs. Paylocity (PCTY) Stock Comparison
Key Takeaways
- Both ADP and PCTY operate in the human capital management (HCM) sector, but ADP is a mature leader with diversified services including professional employer organization (PEO), while PCTY focuses on cloud-based payroll and HR software for growth-oriented clients.
- ADP shares recently traded around $214 with year-to-date gains of 16%, bolstered by a Q3 earnings beat and raised guidance.
- PCTY traded near $110, up 28% year-to-date, supported by Q2 revenue growth of 10.4% but facing upcoming earnings scrutiny.
- ADP offers a 3.17% dividend yield and lower beta (0.86), appealing for stability, versus PCTY's no dividend and beta of 0.57.
- Recent market activity shows both recovering from 52-week lows, with ADP gaining momentum post-earnings and PCTY launching new HR tools.
- Tickeron’s AI tools highlight diverse strategies adaptable to HCM sector volatility.
Introduction
This comparison examines Automatic Data Processing (ADP) and Paylocity Holding Corporation (PCTY), two key players in the human capital management (HCM) space providing payroll, HR, and compliance solutions. Investors and traders interested in business services and software-as-a-service (SaaS) models may find value here, as both stocks reflect broader trends in workforce management amid economic shifts. Recent earnings, product innovations, and market positioning offer insights into relative performance, growth potential, and risk profiles in today's environment.
ADP Overview and Recent Performance
Automatic Data Processing (ADP), a global leader in cloud-based HCM solutions, operates through Employer Services and PEO segments, serving millions of clients with payroll, HR outsourcing, and benefits administration. In recent market activity, shares have hovered around $214, up over 16% year-to-date and showing weekly gains near 9% following a strong Q3 fiscal 2026 earnings report. Revenue reached $5.94 billion with adjusted EPS of $3.37, surpassing estimates, driven by AI-enhanced platforms and organic growth. Sentiment has improved with raised full-year guidance, though shares remain below 52-week highs amid broader sector pressures. Lower beta (0.86) and a 3.17% dividend yield underscore its defensive appeal.
PCTY Overview and Recent Performance
Paylocity Holding Corporation (PCTY) delivers cloud-based HCM, payroll, and spend management software targeting U.S. mid-market firms across industries like healthcare and retail. Shares recently traded near $110, reflecting 28% year-to-date gains despite volatility from 52-week highs above $200. Q2 fiscal 2026 results showed revenue of $416 million, up 10.4% year-over-year and beating forecasts, with recurring revenue growth at 11%. Recent weeks featured the launch of Elevate solutions for HR efficiency, boosting optimism ahead of Q3 earnings. However, analyst price target adjustments reflect caution on growth sustainability in a competitive landscape, with no dividend but solid profitability metrics.
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Head-to-Head Comparison
ADP’s business model blends software platforms with PEO co-employment for comprehensive outsourcing, contrasting PCTY’s pure-play SaaS emphasis on payroll, talent, and benefits modules. Growth drivers differ: ADP leverages scale ($21.6B TTM revenue) and AI integrations for steady expansion, while PCTY ($1.68B TTM) pursues faster recurring revenue via mid-market adoption. Recent momentum favors PCTY’s higher YTD return but ADP’s post-earnings surge. Risk factors include PCTY’s valuation sensitivity (trailing P/E 26 vs. ADP’s 20) and competition; both share HCM sector exposure to labor market shifts. Market sentiment tilts toward ADP for stability (market cap $86B vs. $6B), though PCTY offers upside trade-offs.
Tickeron AI Verdict
Tickeron’s AI currently favors ADP over PCTY, citing greater trend consistency from recent earnings beats, raised guidance, and AI-driven catalysts alongside dividend stability. While PCTY shows stronger YTD momentum, ADP’s relative positioning suggests higher probability of sustained outperformance in risk-averse conditions.
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. Disclaimers and Limitations
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 5 bullish TA indicator(s).
- ADP’s TA Score: 4 bullish, 4 bearish.
- PCTY’s TA Score: 5 bullish, 5 bearish.
Price Growth
ADP (@Packaged Software) experienced а -3.86% price change this week, while PCTY (@Packaged Software) price change was -7.01% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -0.63%. For the same industry, the average monthly price growth was -2.39%, and the average quarterly price growth was +12.11%.
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 (-0.63% 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 | 85.8B | 5.32B | 1,612% |
| EBITDA | 6.7B | 477M | 1,405% |
| Gain YTD | -15.245 | -34.800 | 44% |
| P/E Ratio | 20.02 | 21.25 | 94% |
| 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 | 58 | 60 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 68 Overvalued | |
PROFIT vs RISK RATING 1..100 | 79 | 100 | |
SMR RATING 1..100 | 16 | 43 | |
PRICE GROWTH RATING 1..100 | 60 | 79 | |
P/E GROWTH RATING 1..100 | 86 | 93 | |
SEASONALITY SCORE 1..100 | 50 | 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 (68) 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 (79) 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 (60) in the Data Processing Services industry is in the same range as PCTY (79) 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 (86) in the Data Processing Services industry is in the same range as PCTY (93) 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 (%) | 2 days ago 50% | 2 days ago 76% |
| Stochastic ODDS (%) | 2 days ago 34% | 2 days ago 78% |
| Momentum ODDS (%) | 2 days ago 43% | 2 days ago 78% |
| MACD ODDS (%) | 2 days ago 44% | 2 days ago 66% |
| TrendWeek ODDS (%) | 2 days ago 52% | 2 days ago 72% |
| TrendMonth ODDS (%) | 2 days ago 52% | 2 days ago 73% |
| Advances ODDS (%) | 19 days ago 52% | 23 days ago 66% |
| Declines ODDS (%) | 2 days ago 48% | 8 days ago 71% |
| BollingerBands ODDS (%) | 2 days ago 55% | 2 days ago 66% |
| Aroon ODDS (%) | 2 days ago 37% | 2 days ago 63% |
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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 | -0.95% | ||
| ADP - PCTY | 71% Closely correlated | -1.74% | ||
| PAYX - PCTY | 69% Closely correlated | -2.35% | ||
| WDAY - PCTY | 68% Closely correlated | -3.33% | ||
| CLSK - PCTY | 64% Loosely correlated | +1.31% | ||
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