TIC Solutions (NYSE:TIC – Get Free Report) and Automatic Data Processing (NASDAQ:ADP – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.
Risk and Volatility
TIC Solutions has a beta of 2.96, meaning that its share price is 196% more volatile than the S&P 500. Comparatively, Automatic Data Processing has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
Profitability
This table compares TIC Solutions and Automatic Data Processing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TIC Solutions | -5.64% | -2.30% | -1.11% |
| Automatic Data Processing | 20.11% | 71.34% | 6.73% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TIC Solutions | $1.53 billion | 1.36 | -$87.12 million | ($0.58) | -16.50 |
| Automatic Data Processing | $21.95 billion | 4.85 | $4.41 billion | $10.94 | 24.49 |
Automatic Data Processing has higher revenue and earnings than TIC Solutions. TIC Solutions is trading at a lower price-to-earnings ratio than Automatic Data Processing, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
80.0% of Automatic Data Processing shares are owned by institutional investors. 11.4% of TIC Solutions shares are owned by insiders. Comparatively, 0.2% of Automatic Data Processing shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for TIC Solutions and Automatic Data Processing, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TIC Solutions | 1 | 3 | 3 | 0 | 2.29 |
| Automatic Data Processing | 1 | 8 | 3 | 0 | 2.17 |
TIC Solutions currently has a consensus target price of $12.00, suggesting a potential upside of 25.42%. Automatic Data Processing has a consensus target price of $273.50, suggesting a potential upside of 2.07%. Given TIC Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe TIC Solutions is more favorable than Automatic Data Processing.
Summary
Automatic Data Processing beats TIC Solutions on 9 of the 13 factors compared between the two stocks.
About TIC Solutions
Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.
About Automatic Data Processing
Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.
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