ADP vs. CRM

Last updated Jun 9, 2026

ADP (Automatic Data Processing, Inc.) and CRM (Salesforce, Inc.) are both stocks. ADP operates in Staffing & Employment Services (Industrials), while CRM operates in Software - Application (Technology). Over the past 10 years, ADP returned 12.50%/yr vs 8.51%/yr for CRM. At a 0.42 correlation, their price movements are largely independent.

Performance

ADP vs. CRM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Automatic Data Processing, Inc. (ADP) and Salesforce, Inc. (CRM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ADP achieves a -10.21% return, which is significantly higher than CRM's -30.92% return. Over the past 10 years, ADP has outperformed CRM with an annualized return of 12.50%, while CRM has yielded a comparatively lower 8.51% annualized return.

ADP

• 1D: -1.24%
• 1M: 7.55%
• YTD: -10.21%
• 6M: -10.14%
• 1Y: -28.14%
• 3Y*: 4.26%
• 5Y*: 5.16%
• 10Y*: 12.50%

CRM

• 1D: -1.68%
• 1M: 0.40%
• YTD: -30.92%
• 6M: -29.37%
• 1Y: -33.00%
• 3Y*: -4.89%
• 5Y*: -4.74%
• 10Y*: 8.51%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ADP vs. CRM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ADP Automatic Data Processing, Inc.	-10.21%	-10.18%	28.41%	-0.25%	-1.29%	42.60%	5.86%	32.71%	14.25%	16.54%
CRM Salesforce, Inc.	-30.92%	-20.25%	27.76%	98.46%	-47.83%	14.20%	36.82%	18.74%	33.98%	49.33%

Correlation

The correlation between ADP and CRM is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Jun 24, 2004	0.42

The correlation between ADP and CRM shifts across timeframes, from 0.34 (3 years) to 0.48 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap ADP : $92.16B CRM : $159.00B
EPS ADP : $10.72 CRM : $8.59
PE Ratio ADP : 21.37 CRM : 21.25
PEG Ratio ADP : 1.61 CRM : 0.04
PS Ratio ADP : 4.30 CRM : 3.98
PB Ratio ADP : 14.51 CRM : 4.64
Total Revenue (TTM) ADP : $21.60B CRM : $42.83B
Gross Profit (TTM) ADP : $10.26B CRM : $33.25B
EBITDA (TTM) ADP : $6.51B CRM : $12.32B

Return for Risk

ADP vs. CRM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ADP

ADP Risk / Return Rank: 8
ADP Sharpe Ratio Rank: 2
ADP Sortino Ratio Rank: 4
ADP Omega Ratio Rank: 6
ADP Calmar Ratio Rank: 15
ADP Martin Ratio Rank: 11

CRM

CRM Risk / Return Rank: 8
CRM Sharpe Ratio Rank: 7
CRM Sortino Ratio Rank: 9
CRM Omega Ratio Rank: 10
CRM Calmar Ratio Rank: 9
CRM Martin Ratio Rank: 4

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ADP vs. CRM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Automatic Data Processing, Inc. (ADP) and Salesforce, Inc. (CRM). 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.

	ADP	CRM	Difference
Sharpe ratio: Return per unit of total volatility	-1.16	-0.88	-0.29
Sortino ratio: Return per unit of downside risk	-1.68	-1.17	-0.51
Omega ratio: Gain probability vs. loss probability	0.80	0.86	-0.06
Calmar ratio: Return relative to maximum drawdown	-0.72	-0.84	+0.12
Martin ratio: Return relative to average drawdown	-1.33	-1.62	+0.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ADP vs. CRM - Sharpe Ratio Comparison

The current ADP Sharpe Ratio is -1.16, which is lower than the CRM Sharpe Ratio of -0.88. The chart below compares the historical Sharpe Ratios of ADP and CRM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ADP	CRM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.16	-0.88	-0.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	-0.13	+0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	0.24	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.45	+0.09

Drawdowns

ADP vs. CRM - Drawdown Comparison

The maximum ADP drawdown since its inception was -59.51%, smaller than the maximum CRM drawdown of -70.50%. Use the drawdown chart below to compare losses from any high point for ADP and CRM.

Drawdown Indicators

	ADP	CRM	Difference
Max Drawdown Largest peak-to-trough decline	-59.51%	-70.50%	+10.99%
Max Drawdown (1Y) Largest decline over 1 year	-39.25%	-39.36%	+0.11%
Max Drawdown (3Y) Largest decline over 3 years	-40.78%	-54.70%	+13.92%
Max Drawdown (5Y) Largest decline over 5 years	-40.78%	-58.62%	+17.84%
Max Drawdown (10Y) Largest decline over 10 years	-40.78%	-58.62%	+17.84%
Current Drawdown Current decline from peak	-28.14%	-49.87%	+21.73%
Average Drawdown Average peak-to-trough decline	-12.59%	-16.12%	+3.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	22.88%	20.48%	+2.40%

Volatility

ADP vs. CRM - Volatility Comparison

The current volatility for Automatic Data Processing, Inc. (ADP) is 9.30%, while Salesforce, Inc. (CRM) has a volatility of 16.96%. This indicates that ADP experiences smaller price fluctuations and is considered to be less risky than CRM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ADP	CRM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.30%	16.96%	-7.66%
Volatility (6M) Calculated over the trailing 6-month period	20.42%	31.74%	-11.32%
Volatility (1Y) Calculated over the trailing 1-year period	24.35%	37.87%	-13.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.05%	37.02%	-14.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.48%	35.36%	-10.88%

Dividends

ADP vs. CRM - Dividend Comparison

ADP's dividend yield for the trailing twelve months is around 2.83%, more than CRM's 0.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ADP Automatic Data Processing, Inc.	2.83%	2.46%	1.96%	2.21%	1.83%	1.55%	2.08%	1.92%	2.14%	2.00%	2.10%	2.36%
CRM Salesforce, Inc.	0.92%	0.63%	0.48%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

ADP vs. CRM - Profitability Comparison

The chart below illustrates the profitability comparison between Automatic Data Processing, Inc. and Salesforce, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

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%.

CRM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Salesforce, Inc. reported a gross profit of 8.56B and revenue of 11.13B. Therefore, the gross margin over that period was 76.9%.

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%.

CRM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Salesforce, Inc. reported an operating income of 2.35B and revenue of 11.13B, resulting in an operating margin of 21.1%.

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%.

CRM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Salesforce, Inc. reported a net income of 2.11B and revenue of 11.13B, resulting in a net margin of 18.9%.

Frequently Asked Questions

Can I hold both ADP and CRM in my portfolio?

ADP and CRM have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ADP or CRM?

CRM has higher volatility (16.96%) compared to ADP (9.30%). In terms of maximum drawdown, ADP dropped -59.51% vs CRM's -70.50%.

Which has better risk-adjusted returns?

CRM currently has the higher Sharpe Ratio (-0.88 vs -1.16), 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.