Informatica (INFA) vs. Automatic Data Processing (ADP) Head to Head Analysis
Informatica (NASDAQ: INFA) and Automatic Data Processing (NASDAQ:ADP) are both mid-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
Insider & Institutional Ownership
78.7% of Automatic Data Processing shares are held by institutional investors. 0.3% 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 stock will outperform the market over the long term.
This is a summary of recent ratings for Informatica and Automatic Data Processing, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Automatic Data Processing||0||10||5||0||2.33|
Automatic Data Processing has a consensus target price of $113.23, suggesting a potential downside of 3.44%. Given Automatic Data Processing’s higher probable upside, analysts plainly believe Automatic Data Processing is more favorable than Informatica.
Volatility & Risk
Informatica has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Automatic Data Processing has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
Automatic Data Processing pays an annual dividend of $2.52 per share and has a dividend yield of 2.1%. Informatica does not pay a dividend. Automatic Data Processing pays out 64.1% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Informatica 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|
|Automatic Data Processing||$12.38 billion||4.20||$1.73 billion||$3.93||29.84|
Automatic Data Processing has higher revenue and earnings than Informatica. Automatic Data Processing is trading at a lower price-to-earnings ratio than Informatica, indicating that it is currently the more affordable of the two stocks.
This table compares Informatica and Automatic Data Processing’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Automatic Data Processing||14.08%||42.34%||4.28%|
Automatic Data Processing beats Informatica on 9 of the 13 factors compared between the two stocks.
Informatica Corporation is an independent provider of enterprise data integration software and services. The Company’s product portfolio centers on data offers a range of solutions, both on-premise and in the cloud, for data integration, data quality, big data, master data management, data security, data exchange and data preparation, among others. The Company licenses its software and provides services to end-user customers in a range of industries, including automotive, energy and utilities, entertainment/media, financial services, healthcare, insurance, manufacturing, public sector, retail, services, technology, telecommunications and travel/transportation. The Company’s products comprise a data integration platform that allows business and Information Technology (IT) executives, architects and managers to provide relevant data to the business. The Informatica Platform, powered by Vibe virtual data machine, handles various types of data integration and data management projects.
About Automatic Data Processing
Automatic Data Processing, Inc. (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers a range of human resources (HR) business process outsourcing and technology-enabled HCM solutions. These offerings include payroll services, benefits administration, talent management, HR management, time and attendance management, insurance services, retirement services, and tax and compliance services. ADP TotalSource, ADP’s PEO business, offers small and mid-sized businesses a HR outsourcing solution through a co-employment model. As a PEO, ADP TotalSource provides HR management services while the client continues to direct the day-to-day job-related duties of the employees.
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