Automatic Data Processing (NASDAQ:ADP) & Urgent.ly (NASDAQ:ULY) Critical Analysis

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

Valuation and Earnings

This table compares Automatic Data Processing and Urgent.ly”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Automatic Data Processing	$19.20 billion	6.47	$3.75 billion	$9.37	32.52
Urgent.ly	$165.73 million	0.05	$74.73 million	($176.29)	0.00

Automatic Data Processing has higher revenue and earnings than Urgent.ly. Urgent.ly 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.

Profitability

This table compares Automatic Data Processing and Urgent.ly’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	19.72%	82.36%	6.89%
Urgent.ly	44.78%	N/A	-91.23%

Analyst Ratings

This is a summary of current recommendations for Automatic Data Processing and Urgent.ly, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Automatic Data Processing	2	8	2	0	2.00
Urgent.ly	0	0	1	0	3.00

Automatic Data Processing currently has a consensus target price of $289.91, suggesting a potential downside of 4.86%. Urgent.ly has a consensus target price of $2.00, suggesting a potential upside of 244.89%. Given Urgent.ly’s stronger consensus rating and higher possible upside, analysts plainly believe Urgent.ly is more favorable than Automatic Data Processing.

Institutional & Insider Ownership

80.0% of Automatic Data Processing shares are owned by institutional investors. Comparatively, 28.3% of Urgent.ly shares are owned by institutional investors. 0.2% of Automatic Data Processing shares are owned by company insiders. Comparatively, 13.4% of Urgent.ly shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Automatic Data Processing beats Urgent.ly on 9 of the 13 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 Urgent.ly

Urgent.ly Inc. offers mobility assistance software platform for roadside assistance in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its services include car lockout, tire changes, towing, stuck in ditch and winch services, motorcycle towing, electric vehicle towing, jump start, and gas delivery. The company's software platform combines location-based services, real-time data, AI and machine-to-machine communication to provide roadside assistance solutions. It serves automotive, insurance, telematics, and other transportation-focused verticals. Urgent.ly Inc. was incorporated in 2013 and is headquartered in Vienna, Virginia.