PAYX vs. ADP

Last updated Jun 4, 2026

PAYX (Paychex, Inc.) and ADP (Automatic Data Processing, Inc.) are both stocks. Both operate in the Staffing & Employment Services industry within the Industrials sector. Over the past 10 years, PAYX returned 9.37%/yr vs 12.48%/yr for ADP. A 0.52 correlation means they provide meaningful diversification when combined.

Performance

PAYX vs. ADP - Performance Comparison

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

Returns By Period

In the year-to-date period, PAYX achieves a -10.19% return, which is significantly higher than ADP's -10.73% return. Over the past 10 years, PAYX has underperformed ADP with an annualized return of 9.37%, while ADP has yielded a comparatively higher 12.48% annualized return.

PAYX

• 1D: -2.32%
• 1M: 7.82%
• YTD: -10.19%
• 6M: -11.14%
• 1Y: -35.23%
• 3Y*: -0.47%
• 5Y*: 2.22%
• 10Y*: 9.37%

ADP

• 1D: -1.48%
• 1M: 7.77%
• YTD: -10.73%
• 6M: -11.18%
• 1Y: -28.50%
• 3Y*: 4.06%
• 5Y*: 5.09%
• 10Y*: 12.48%

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

PAYX vs. ADP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAYX Paychex, Inc.	-10.19%	-17.49%	21.31%	6.21%	-13.16%	50.16%	13.25%	34.53%	-1.08%	15.41%
ADP Automatic Data Processing, Inc.	-10.73%	-10.18%	28.41%	-0.25%	-1.29%	42.60%	5.86%	32.71%	14.25%	16.54%

Correlation

The correlation between PAYX and ADP is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Mar 27, 1990	0.52

Over the past year, PAYX and ADP have become more correlated (0.82) than their long-term average of 0.52, meaning their price movements have been converging.

Fundamentals

Market Cap PAYX : $35.50B ADP : $91.62B
EPS PAYX : $4.53 ADP : $10.72
PE Ratio PAYX : 21.73 ADP : 21.25
PEG Ratio PAYX : 1.93 ADP : 1.60
PS Ratio PAYX : 5.61 ADP : 4.27
PB Ratio PAYX : 8.85 ADP : 14.43
Total Revenue (TTM) PAYX : $6.33B ADP : $21.60B
Gross Profit (TTM) PAYX : $4.68B ADP : $10.26B
EBITDA (TTM) PAYX : $2.09B ADP : $6.51B

Return for Risk

PAYX vs. ADP — Risk / Return Rank

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

PAYX

PAYX Risk / Return Rank: 6
PAYX Sharpe Ratio Rank: 1
PAYX Sortino Ratio Rank: 3
PAYX Omega Ratio Rank: 4
PAYX Calmar Ratio Rank: 11
PAYX Martin Ratio Rank: 13

ADP

ADP Risk / Return Rank: 7
ADP Sharpe Ratio Rank: 2
ADP Sortino Ratio Rank: 4
ADP Omega Ratio Rank: 5
ADP Calmar Ratio Rank: 15
ADP Martin Ratio Rank: 12

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.

PAYX vs. ADP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Paychex, Inc. (PAYX) 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.

	PAYX	ADP	Difference
Sharpe ratio Return per unit of total volatility	-1.33	-1.18	-0.15
Sortino ratio Return per unit of downside risk	-1.91	-1.71	-0.20
Omega ratio Gain probability vs. loss probability	0.77	0.80	-0.03
Calmar ratio Return relative to maximum drawdown	-0.79	-0.70	-0.08
Martin ratio Return relative to average drawdown	-1.23	-1.26	+0.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAYX vs. ADP - Sharpe Ratio Comparison

The current PAYX Sharpe Ratio is -1.33, which is comparable to the ADP Sharpe Ratio of -1.18. The chart below compares the historical Sharpe Ratios of PAYX and ADP, 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

	PAYX	ADP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.33	-1.18	-0.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.09	0.23	-0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	0.51	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.54	0.00

Drawdowns

PAYX vs. ADP - Drawdown Comparison

The maximum PAYX drawdown since its inception was -64.85%, which is greater than ADP's maximum drawdown of -59.51%. Use the drawdown chart below to compare losses from any high point for PAYX and ADP.

Drawdown Indicators

	PAYX	ADP	Difference
Max Drawdown Largest peak-to-trough decline	-64.85%	-59.51%	-5.34%
Max Drawdown (1Y) Largest decline over 1 year	-44.95%	-40.78%	-4.17%
Max Drawdown (3Y) Largest decline over 3 years	-44.95%	-40.78%	-4.17%
Max Drawdown (5Y) Largest decline over 5 years	-44.95%	-40.78%	-4.17%
Max Drawdown (10Y) Largest decline over 10 years	-44.95%	-40.78%	-4.17%
Current Drawdown Current decline from peak	-35.85%	-28.56%	-7.29%
Average Drawdown Average peak-to-trough decline	-17.95%	-12.59%	-5.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	28.77%	22.68%	+6.09%

Volatility

PAYX vs. ADP - Volatility Comparison

Paychex, Inc. (PAYX) and Automatic Data Processing, Inc. (ADP) have volatilities of 9.97% and 9.79%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAYX	ADP	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.97%	9.79%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	20.75%	20.37%	+0.38%
Volatility (1Y) Calculated over the trailing 1-year period	26.62%	24.21%	+2.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.72%	22.04%	+1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.24%	24.47%	+0.77%

Dividends

PAYX vs. ADP - Dividend Comparison

PAYX's dividend yield for the trailing twelve months is around 4.50%, more than ADP's 2.85% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ADP Automatic Data Processing, Inc.	2.85%	2.46%	1.96%	2.21%	1.83%	1.55%	2.08%	1.92%	2.14%	2.00%	2.10%	2.36%
PAYX Paychex, Inc.	4.50%	3.76%	2.73%	2.90%	2.62%	1.90%	2.66%	2.85%	3.35%	2.82%	2.89%	3.03%

Financials

PAYX vs. ADP - Profitability Comparison

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

PAYX - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Paychex, Inc. reported a gross profit of 1.38B and revenue of 1.81B. Therefore, the gross margin over that period was 76.2%.

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%.

PAYX - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Paychex, Inc. reported an operating income of 792.00M and revenue of 1.81B, resulting in an operating margin of 43.8%.

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%.

PAYX - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Paychex, Inc. reported a net income of 560.30M and revenue of 1.81B, resulting in a net margin of 31.0%.

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

Can I hold both PAYX and ADP in my portfolio?

PAYX and ADP have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAYX or ADP?

PAYX has higher volatility (9.97%) compared to ADP (9.79%). In terms of maximum drawdown, PAYX dropped -64.85% vs ADP's -59.51%.

Which has better risk-adjusted returns?

ADP currently has the higher Sharpe Ratio (-1.18 vs -1.33), 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.