INTU vs ADP

For growth investors, Intuit Inc.

(INTU) is the stronger pick with 15. 6% revenue growth year-over-year, versus 7. 1% for Automatic Data Processing, Inc. (ADP). Automatic Data Processing, Inc. (ADP) offers the better valuation at 20. 8x trailing P/E (18. 8x forward), making it the more compelling value choice. Analysts rate Intuit Inc. (INTU) a "Buy" — based on 43 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 20. 8x versus Intuit Inc. at 28. 4x. On forward P/E, Intuit Inc. is actually cheaper at 16. 7x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Intuit Inc. wins at 1. 15x versus Automatic Data Processing, Inc. 's 1. 58x — a reasonable growth-adjusted valuation.

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

(ADP) delivered a total return of +19. 5%, compared to +3. 1% for Intuit Inc. (INTU). Over 10 years, the gap is even starker: INTU returned +311. 1% versus ADP's +185. 6%. 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 Intuit Inc. 's 0. 61β — meaning INTU is approximately 62% more volatile than ADP relative to the S&P 500. On balance sheet safety, Intuit Inc. (INTU) carries a lower debt/equity ratio of 34% versus 146% for Automatic Data Processing, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Intuit Inc.

(INTU) is pulling ahead at 15. 6% versus 7. 1% for Automatic Data Processing, Inc. (ADP). On earnings-per-share growth, the picture is similar: Intuit Inc. grew EPS 31. 1% year-over-year, compared to 9. 7% for Automatic Data Processing, Inc.. Over a 3-year CAGR, INTU leads at 14. 0% 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.

Intuit Inc.

(INTU) is the more profitable company, earning 20. 5% net margin versus 19. 8% for Automatic Data Processing, Inc. — meaning it keeps 20. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADP leads at 26. 3% versus 26. 1% for INTU. At the gross margin level — before operating expenses — INTU leads at 80. 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, Intuit Inc. (INTU) is the more undervalued stock at a PEG of 1. 15x versus Automatic Data Processing, Inc. 's 1. 58x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Intuit Inc. (INTU) trades at 16. 7x forward P/E versus 18. 8x for Automatic Data Processing, Inc. — 2. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for INTU: 71. 6% to $666. 75.

All stocks in this comparison pay dividends.

Automatic Data Processing, Inc. (ADP) offers the highest yield at 2. 8%, versus 1. 1% for Intuit Inc. (INTU).

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%, INTU: +311. 1%), 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 (INTU (Technology) and ADP (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: INTU is a mid-cap high-growth stock; ADP is a mid-cap quality compounder 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.