CAT vs. ADP
CAT (Caterpillar Inc.) and ADP (Automatic Data Processing, Inc.) are both stocks. Both are in the Industrials sector — CAT in Farm & Heavy Construction Machinery, ADP in Staffing & Employment Services. Over the past 10 years, CAT returned 31.08%/yr vs 12.33%/yr for ADP. At a 0.35 correlation, their price movements are largely independent.
Performance
CAT vs. ADP - Performance Comparison
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Returns By Period
In the year-to-date period, CAT achieves a 57.36% return, which is significantly higher than ADP's -11.51% return. Over the past 10 years, CAT has outperformed ADP with an annualized return of 31.08%, while ADP has yielded a comparatively lower 12.33% annualized return.
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
- 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 vs. ADP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 57.36% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
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% |
Correlation
The correlation between CAT and ADP 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 CAT and ADP shifts across timeframes, from -0.14 (1 year) to 0.35 (all time), reflecting how their relationship changes across market environments.
Fundamentals
CAT:
$418.12B
ADP:
$90.83B
CAT:
$20.07
ADP:
$10.72
CAT:
44.72
ADP:
21.06
CAT:
2.96
ADP:
1.59
CAT:
5.95
ADP:
4.24
CAT:
22.41
ADP:
14.30
CAT:
$70.76B
ADP:
$21.60B
CAT:
$23.01B
ADP:
$10.26B
CAT:
$15.31B
ADP:
$6.51B
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Return for Risk
CAT vs. ADP — Risk / Return Rank
CAT
ADP
CAT vs. ADP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and Automatic Data Processing, Inc. (ADP). 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.
| CAT | ADP | 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 | 1.63 | 0.82 | +0.81 |
| Calmar ratioReturn relative to maximum drawdown | 10.86 | -0.68 | +11.54 |
| Martin ratioReturn relative to average drawdown | 35.61 | -1.28 | +36.89 |
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Drawdowns
CAT vs. ADP - Drawdown Comparison
The maximum CAT drawdown since its inception was -73.43%, which is greater than ADP's maximum drawdown of -59.51%. Use the drawdown chart below to compare losses from any high point for CAT and ADP.
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Drawdown Indicators
| CAT | ADP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.43% | -59.51% | -13.92% |
Max Drawdown (1Y)Largest decline over 1 year | -13.88% | -38.16% | +24.28% |
Max Drawdown (3Y)Largest decline over 3 years | -34.05% | -40.78% | +6.73% |
Max Drawdown (5Y)Largest decline over 5 years | -34.05% | -40.78% | +6.73% |
Max Drawdown (10Y)Largest decline over 10 years | -43.36% | -40.78% | -2.58% |
Current DrawdownCurrent decline from peak | -4.56% | -29.18% | +24.62% |
Average DrawdownAverage peak-to-trough decline | -19.73% | -12.59% | -7.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.23% | 20.34% | -16.11% |
Volatility
CAT vs. ADP - Volatility Comparison
Caterpillar Inc. (CAT) has a higher volatility of 13.12% compared to Automatic Data Processing, Inc. (ADP) at 9.59%. This indicates that CAT's price experiences larger fluctuations and is considered to be riskier than ADP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CAT | ADP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.12% | 9.59% | +3.53% |
Volatility (6M)Calculated over the trailing 6-month period | 28.52% | 20.52% | +8.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.18% | 24.27% | +10.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.79% | 22.07% | +8.72% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.98% | 24.49% | +6.49% |
Dividends
CAT vs. ADP - Dividend Comparison
CAT's dividend yield for the trailing twelve months is around 0.67%, less than ADP's 2.87% 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
CAT vs. ADP - Financials Comparison
This section allows you to compare key financial metrics between Caterpillar Inc. and Automatic Data Processing, 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
CAT vs. ADP - Profitability Comparison
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 - 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 - 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 - 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 - 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%.
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%.
Frequently Asked Questions
CAT and ADP 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, CAT dropped -73.43% vs ADP's -59.51%.
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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