TIC Solutions (NYSE:TIC – Get Free Report) and Automatic Data Processing (NASDAQ:ADP – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
Profitability
This table compares TIC Solutions and Automatic Data Processing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TIC Solutions | -5.64% | -2.30% | -1.11% |
| Automatic Data Processing | 20.11% | 71.34% | 6.73% |
Earnings & Valuation
This table compares TIC Solutions and Automatic Data Processing”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TIC Solutions | $1.53 billion | 1.34 | -$87.12 million | ($0.58) | -16.17 |
| Automatic Data Processing | $21.95 billion | 5.03 | $4.41 billion | $10.94 | 25.38 |
Automatic Data Processing has higher revenue and earnings than TIC Solutions. TIC Solutions is trading at a lower price-to-earnings ratio than Automatic Data Processing, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
TIC Solutions has a beta of 2.96, suggesting that its stock price is 196% more volatile than the S&P 500. Comparatively, Automatic Data Processing has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for TIC Solutions and Automatic Data Processing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TIC Solutions | 1 | 3 | 3 | 0 | 2.29 |
| Automatic Data Processing | 1 | 8 | 3 | 0 | 2.17 |
TIC Solutions presently has a consensus price target of $12.00, suggesting a potential upside of 27.93%. Automatic Data Processing has a consensus price target of $273.50, suggesting a potential downside of 1.48%. Given TIC Solutions’ stronger consensus rating and higher probable upside, research analysts clearly believe TIC Solutions is more favorable than Automatic Data Processing.
Institutional & Insider Ownership
80.0% of Automatic Data Processing shares are held by institutional investors. 11.4% of TIC Solutions shares are held by insiders. Comparatively, 0.2% of Automatic Data Processing shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Automatic Data Processing beats TIC Solutions on 9 of the 13 factors compared between the two stocks.
About TIC Solutions
Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.
About Automatic Data Processing
Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.
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