ALRS vs ADP

For growth investors, Automatic Data Processing, Inc.

(ADP) is the stronger pick with 7. 1% revenue growth year-over-year, versus -3. 1% for Alerus Financial Corporation (ALRS). Automatic Data Processing, Inc. (ADP) offers the better valuation at 22. 7x trailing P/E (20. 4x forward), making it the more compelling value choice. Analysts rate Alerus Financial Corporation (ALRS) a "Hold" — based on 5 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, Automatic Data Processing, Inc.

(ADP) is the cheapest at 22. 7x versus Alerus Financial Corporation at 44. 6x. On forward P/E, Alerus Financial Corporation is actually cheaper at 10. 3x — notably different from the trailing picture, reflecting expected earnings growth.

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

(ADP) delivered a total return of +27. 1%, compared to +4. 7% for Alerus Financial Corporation (ALRS). Over 10 years, the gap is even starker: ADP returned +207. 7% versus ALRS's +106. 8%. 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. 25β versus Alerus Financial Corporation's 0. 79β — meaning ALRS is approximately 217% more volatile than ADP relative to the S&P 500. On balance sheet safety, Alerus Financial Corporation (ALRS) carries a lower debt/equity ratio of 78% 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 -3. 1% for Alerus Financial Corporation (ALRS). On earnings-per-share growth, the picture is similar: Automatic Data Processing, Inc. grew EPS 9. 7% year-over-year, compared to -18. 1% for Alerus Financial Corporation. 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 5. 3% for Alerus Financial Corporation — 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 6. 9% for ALRS. At the gross margin level — before operating expenses — ALRS leads at 67. 2%, 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.

On forward earnings alone, Alerus Financial Corporation (ALRS) trades at 10.

3x forward P/E versus 20. 4x for Automatic Data Processing, Inc. — 10. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADP: 7. 7% to $243. 63.

All stocks in this comparison pay dividends.

Alerus Financial Corporation (ALRS) offers the highest yield at 2. 7%, versus 2. 6% for Automatic Data Processing, Inc. (ADP).

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. 25), 2. 6% yield, +207. 7% 10Y return). Both have compounded well over 10 years (ADP: +207. 7%, ALRS: +106. 8%), 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 (ALRS (Financial Services) and ADP (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.