Automatic Data Processing (NASDAQ:ADP) and Innodata (NASDAQ:INOD) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
Automatic Data Processing pays an annual dividend of $3.16 per share and has a dividend yield of 1.9%. Innodata does not pay a dividend. Automatic Data Processing pays out 58.0% of its earnings in the form of a dividend.
This table compares Automatic Data Processing and Innodata’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 is a summary of recent recommendations and price targets for Automatic Data Processing and Innodata, as reported 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 currently has a consensus target price of $179.63, suggesting a potential upside of 10.38%. Given Automatic Data Processing’s higher possible upside, equities analysts plainly believe Automatic Data Processing is more favorable than Innodata.
Risk & Volatility
Automatic Data Processing has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Innodata has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Insider & Institutional Ownership
80.3% of Automatic Data Processing shares are owned by institutional investors. Comparatively, 13.8% of Innodata shares are owned by institutional investors. 0.3% of Automatic Data Processing shares are owned by insiders. Comparatively, 11.4% of Innodata shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Automatic Data Processing and Innodata’s 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||4.97||$2.29 billion||$5.45||29.86|
Automatic Data Processing has higher revenue and earnings than Innodata.
Automatic Data Processing beats Innodata on 10 of the 12 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.
Innodata Inc. operates as a digital services and solution company worldwide. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility PR Solutions (Agility). The DDS segment combines deep neural networks and human expertise to make unstructured information useable for various domains, including health, science, and law. The Synodex segment transforms medical records into useable digital data and applies technologies to the digital data to augment decision support. The Agility segment offers various tools and related professional services, such as content amplification solution, integrated newswire services, an influencer targeting solution to help PR professionals identify influencers, and media monitoring and analysis solution. This segment also provides media monitoring and PR measurement; and PR reporting and measurement services, including custom reports and PR measurement and social media/influencer analysis, as well as Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies. In addition, it provides various services, including acquisition, transformation, and digital data enrichment. In addition, the company offers digital operations management and analytics, such as IP rights, contract, publishing workflow, publisher relationship, and transaction management, as well as provides customer relations, data processing, and regulatory reporting services. Further, it develops and maintains content applications. The company serves banking and financial services, technology, digital retailing, healthcare, science, and insurance sector through its professional staff, senior management, and direct sales personnel. Innodata Inc. was founded in 1988 and is headquartered in Ridgefield Park, New Jersey.
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