ADP vs G

For growth investors, Automatic Data Processing, Inc.

(ADP) is the stronger pick with 7. 1% revenue growth year-over-year, versus 6. 6% for Genpact Limited (G). Genpact Limited (G) offers the better valuation at 10. 9x trailing P/E (8. 4x forward), making it the more compelling value choice. Analysts rate Automatic Data Processing, Inc. (ADP) a "Hold" — based on 36 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Genpact Limited (G) is the cheapest at 10.

9x versus Automatic Data Processing, Inc. at 21. 1x. On forward P/E, Genpact Limited is actually cheaper at 8. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Genpact Limited wins at 0. 57x versus Automatic Data Processing, Inc. 's 1. 58x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Automatic Data Processing, Inc.

(ADP) delivered a total return of +22. 3%, compared to -21. 7% for Genpact Limited (G). Over 10 years, the gap is even starker: ADP returned +185. 6% versus G's +41. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Automatic Data Processing, Inc.

(ADP) is the lower-risk stock at 0. 37β versus Genpact Limited's 0. 67β — meaning G is approximately 79% more volatile than ADP relative to the S&P 500. On balance sheet safety, Genpact Limited (G) carries a lower debt/equity ratio of 69% versus 146% for Automatic Data Processing, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Automatic Data Processing, Inc.

(ADP) is pulling ahead at 7. 1% versus 6. 6% for Genpact Limited (G). On earnings-per-share growth, the picture is similar: Genpact Limited grew EPS 9. 8% year-over-year, compared to 9. 7% for Automatic Data Processing, Inc.. Over a 3-year CAGR, ADP leads at 7. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Automatic Data Processing, Inc.

(ADP) is the more profitable company, earning 19. 8% net margin versus 10. 9% for Genpact Limited — meaning it keeps 19. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADP leads at 26. 3% versus 15. 0% for G. At the gross margin level — before operating expenses — ADP leads at 50. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Genpact Limited (G) is the more undervalued stock at a PEG of 0. 57x versus Automatic Data Processing, Inc. 's 1. 58x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Genpact Limited (G) trades at 8. 4x forward P/E versus 18. 8x for Automatic Data Processing, Inc. — 10. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for G: 35. 0% to $46. 00.

All stocks in this comparison pay dividends.

Automatic Data Processing, Inc. (ADP) offers the highest yield at 2. 8%, versus 2. 0% for Genpact Limited (G).

For long-horizon retirement investors, Automatic Data Processing, Inc.

(ADP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 37), 2. 8% yield, +185. 6% 10Y return). Both have compounded well over 10 years (ADP: +185. 6%, G: +41. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (ADP (Industrials) and G (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ADP is a mid-cap quality compounder stock; G is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.