Head-To-Head Analysis: Automatic Data Processing (NASDAQ:ADP) & Xylo Technologies (NASDAQ:XYLO)

Automatic Data Processing (NASDAQ:ADP) and Xylo Technologies (NASDAQ:XYLO) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares Automatic Data Processing and Xylo Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Automatic Data Processing	$19.04 billion	6.93	$3.75 billion	$9.77	33.29
Xylo Technologies	$29.86 million	0.14	-$16.02 million	N/A	N/A

Automatic Data Processing has higher revenue and earnings than Xylo Technologies.

Insider & Institutional Ownership

80.0% of Automatic Data Processing shares are held by institutional investors. Comparatively, 0.3% of Xylo Technologies shares are held by institutional investors. 0.2% of Automatic Data Processing shares are held by company insiders. Comparatively, 2.2% of Xylo Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Automatic Data Processing and Xylo Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Automatic Data Processing	1	7	3	0	2.18
Xylo Technologies	0	0	0	0	0.00

Automatic Data Processing currently has a consensus price target of $305.64, suggesting a potential downside of 6.02%. Given Automatic Data Processing’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Automatic Data Processing is more favorable than Xylo Technologies.

Profitability

This table compares Automatic Data Processing and Xylo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	19.76%	80.86%	6.83%
Xylo Technologies	N/A	N/A	N/A

Volatility and Risk

Automatic Data Processing has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Xylo Technologies has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

Automatic Data Processing beats Xylo Technologies on 11 of the 12 factors compared between the two stocks.

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.

About Xylo Technologies

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.