CI&T (NYSE:CINT) vs. Automatic Data Processing (NASDAQ:ADP) Head-To-Head Contrast

Automatic Data Processing (NASDAQ:ADP) and CI&T (NYSE:CINT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Automatic Data Processing has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, CI&T has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Earnings & Valuation

This table compares Automatic Data Processing and CI&T”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Automatic Data Processing	$20.56 billion	4.38	$4.08 billion	$10.72	21.02
CI&T	$489.65 million	0.93	$40.62 million	$0.31	10.87

Automatic Data Processing has higher revenue and earnings than CI&T. CI&T 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.

Analyst Recommendations

This is a summary of recent ratings for Automatic Data Processing and CI&T, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Automatic Data Processing	1	10	3	1	2.27
CI&T	0	2	4	0	2.67

Automatic Data Processing presently has a consensus price target of $249.00, indicating a potential upside of 10.51%. CI&T has a consensus price target of $6.80, indicating a potential upside of 101.78%. Given CI&T’s stronger consensus rating and higher probable upside, analysts clearly believe CI&T is more favorable than Automatic Data Processing.

Insider & Institutional Ownership

80.0% of Automatic Data Processing shares are owned by institutional investors. Comparatively, 92.5% of CI&T shares are owned by institutional investors. 0.2% of Automatic Data Processing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Automatic Data Processing and CI&T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	20.12%	68.82%	6.78%
CI&T	7.90%	13.19%	7.32%

Summary

Automatic Data Processing beats CI&T on 9 of the 15 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 CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.