ADP vs. CAT
ADP (Automatic Data Processing, Inc.) and CAT (Caterpillar Inc.) are both stocks. Both are in the Industrials sector — ADP in Staffing & Employment Services, CAT in Farm & Heavy Construction Machinery. Over the past 10 years, ADP returned 12.33%/yr vs 31.08%/yr for CAT. At a 0.35 correlation, their price movements are largely independent.
Performance
ADP vs. CAT - Performance Comparison
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Returns By Period
In the year-to-date period, ADP achieves a -11.51% return, which is significantly lower than CAT's 57.36% return. Over the past 10 years, ADP has underperformed CAT with an annualized return of 12.33%, while CAT has yielded a comparatively higher 31.08% annualized return.
ADP
- 1D
- -2.31%
- 1M
- 5.59%
- YTD
- -11.51%
- 6M
- -13.44%
- 1Y
- -25.90%
- 3Y*
- 3.26%
- 5Y*
- 4.61%
- 10Y*
- 12.33%
CAT
- 1D
- 4.84%
- 1M
- -1.59%
- YTD
- 57.36%
- 6M
- 44.09%
- 1Y
- 149.86%
- 3Y*
- 58.05%
- 5Y*
- 34.78%
- 10Y*
- 31.08%
ADP vs. CAT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ADP Automatic Data Processing, Inc. | -11.51% | -10.18% | 28.41% | -0.25% | -1.29% | 42.60% | 5.86% | 32.71% | 14.25% | 16.54% |
CAT Caterpillar Inc. | 57.36% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
Correlation
The correlation between ADP and CAT is -0.14, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.34 |
Correlation (All Time) Calculated using the full available price history since Apr 6, 1983 | 0.35 |
The correlation between ADP and CAT shifts across timeframes, from -0.14 (1 year) to 0.35 (all time), reflecting how their relationship changes across market environments.
Fundamentals
ADP:
$90.83B
CAT:
$418.12B
ADP:
$10.72
CAT:
$20.07
ADP:
21.06
CAT:
44.72
ADP:
1.59
CAT:
2.96
ADP:
4.24
CAT:
5.95
ADP:
14.30
CAT:
22.41
ADP:
$21.60B
CAT:
$70.76B
ADP:
$10.26B
CAT:
$23.01B
ADP:
$6.51B
CAT:
$15.31B
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Return for Risk
ADP vs. CAT — Risk / Return Rank
ADP
CAT
ADP vs. CAT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Automatic Data Processing, Inc. (ADP) and Caterpillar Inc. (CAT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ADP | CAT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -5.36 | ||
| Sortino ratioReturn per unit of downside risk | -6.44 | ||
| Omega ratioGain probability vs. loss probability | 0.82 | 1.63 | -0.81 |
| Calmar ratioReturn relative to maximum drawdown | -0.68 | 10.86 | -11.54 |
| Martin ratioReturn relative to average drawdown | -1.28 | 35.61 | -36.89 |
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Drawdowns
ADP vs. CAT - Drawdown Comparison
The maximum ADP drawdown since its inception was -59.51%, smaller than the maximum CAT drawdown of -73.43%. Use the drawdown chart below to compare losses from any high point for ADP and CAT.
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Drawdown Indicators
| ADP | CAT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.51% | -73.43% | +13.92% |
Max Drawdown (1Y)Largest decline over 1 year | -38.16% | -13.88% | -24.28% |
Max Drawdown (3Y)Largest decline over 3 years | -40.78% | -34.05% | -6.73% |
Max Drawdown (5Y)Largest decline over 5 years | -40.78% | -34.05% | -6.73% |
Max Drawdown (10Y)Largest decline over 10 years | -40.78% | -43.36% | +2.58% |
Current DrawdownCurrent decline from peak | -29.18% | -4.56% | -24.62% |
Average DrawdownAverage peak-to-trough decline | -12.59% | -19.73% | +7.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 20.34% | 4.23% | +16.11% |
Volatility
ADP vs. CAT - Volatility Comparison
The current volatility for Automatic Data Processing, Inc. (ADP) is 9.59%, while Caterpillar Inc. (CAT) has a volatility of 13.12%. This indicates that ADP experiences smaller price fluctuations and is considered to be less risky than CAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ADP | CAT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.59% | 13.12% | -3.53% |
Volatility (6M)Calculated over the trailing 6-month period | 20.52% | 28.52% | -8.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.27% | 35.18% | -10.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.07% | 30.79% | -8.72% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.49% | 30.98% | -6.49% |
Dividends
ADP vs. CAT - Dividend Comparison
ADP's dividend yield for the trailing twelve months is around 2.87%, more than CAT's 0.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ADP Automatic Data Processing, Inc. | 2.87% | 2.46% | 1.96% | 2.21% | 1.83% | 1.55% | 2.08% | 1.92% | 2.14% | 2.00% | 2.10% | 2.36% |
CAT Caterpillar Inc. | 0.67% | 1.02% | 1.49% | 1.69% | 1.93% | 2.07% | 2.26% | 2.56% | 2.58% | 1.97% | 3.32% | 4.33% |
Financials
ADP vs. CAT - Financials Comparison
This section allows you to compare key financial metrics between Automatic Data Processing, Inc. and Caterpillar Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ADP vs. CAT - Profitability Comparison
ADP - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Automatic Data Processing, Inc. reported a gross profit of 2.87B and revenue of 5.94B. Therefore, the gross margin over that period was 48.3%.
CAT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported a gross profit of 6.11B and revenue of 17.42B. Therefore, the gross margin over that period was 35.1%.
ADP - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Automatic Data Processing, Inc. reported an operating income of 1.79B and revenue of 5.94B, resulting in an operating margin of 30.1%.
CAT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported an operating income of 3.09B and revenue of 17.42B, resulting in an operating margin of 17.7%.
ADP - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Automatic Data Processing, Inc. reported a net income of 1.36B and revenue of 5.94B, resulting in a net margin of 22.9%.
CAT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported a net income of 2.55B and revenue of 17.42B, resulting in a net margin of 14.6%.
Frequently Asked Questions
ADP and CAT have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CAT has higher volatility (13.12%) compared to ADP (9.59%). In terms of maximum drawdown, ADP dropped -59.51% vs CAT's -73.43%.
CAT currently has the higher Sharpe Ratio (4.29 vs -1.07), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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