Automatic Data Processing, Inc. (ADP) vs Illinois Tool Works Inc. (ITW)
ADP leads on 13 of 16 compared metrics.
A side-by-side comparison of Automatic Data Processing, Inc. and Illinois Tool Works Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
ADP
Automatic Data Processing, Inc.
$226.21Industrials
ITW
Illinois Tool Works Inc.
$257.43Industrials
Total return — ADP vs ITW
growth of $100 · last 30yADP +1446.2%ITW +1460.2%ITW compounded faster
ADP ITW
ADP vs ITW: by the numbers
- •ADP is the larger company ($90.42B vs $74.06B market cap).
- •ADP trades at the lower earnings multiple (21.08 vs 23.90 P/E).
- •ADP converts more revenue to profit (20.12% vs 19.32% net margin).
- •ADP grew revenue faster over the past five years (8.08% vs 4.71% CAGR).
- •ADP pays the higher dividend yield (2.94% vs 2.46%).
Which is better, ADP or ITW?
Metric tally: ADP 13 · ITW 3It depends on what you're optimizing for:
ValueADP(lower P/E)
GrowthADP(faster 5Y revenue CAGR)
IncomeADP(higher dividend yield)
Valuation
| Metric | ADP | ITW |
|---|---|---|
| P/E ratio | 21.08● | 23.90 |
| Forward P/E | 20.43● | 22.78 |
| P/S ratio | 4.21● | 4.59 |
| P/B ratio | 14.33● | 23.05 |
| PEG ratio | 3.20 | 2.50● |
| EV / EBITDA | 14.14● | 17.79 |
| FCF yield | 5.66%● | 3.68% |
Profitability
| Metric | ADP | ITW |
|---|---|---|
| Gross margin | 47.48%● | 44.12% |
| Operating margin | 19.20% | 26.42%● |
| Net margin | 20.12%● | 19.32% |
| ROE | 68.43% | 97.06%● |
| ROIC | 24.66% | 24.49% |
Dividends
| Metric | ADP | ITW |
|---|---|---|
| Dividend yield | 2.94%● | 2.46% |
| Payout ratio | 66.27% | 60.17% |
Growth (annualized)
| Metric | ADP | ITW |
|---|---|---|
| Revenue CAGR (5Y) | 8.08%● | 4.71% |
| EPS CAGR (5Y) | 11.83%● | 9.58% |
| FCF CAGR (5Y) | 14.52%● | 1.38% |
| Total return CAGR (5Y) | 4.80%● | 4.45% |
Frequently asked
- Which is better, ADP or ITW?
- It depends on your goal. value: ADP (lower P/E); growth: ADP (faster 5Y revenue CAGR); income: ADP (higher dividend yield). Across all compared metrics, ADP leads 13 to 3.
- Is ADP or ITW cheaper?
- On trailing earnings, ADP is cheaper: ADP trades at a 21.08 P/E and ITW at 23.90.
- Which has grown faster, ADP or ITW?
- Over the past five years, ADP grew revenue faster — ADP at a 8.08% CAGR versus ITW at 4.71%.
- Does ADP or ITW pay a bigger dividend?
- ADP yields 2.94% and ITW yields 2.46% based on trailing dividends and the latest price.
- Is ADP or ITW more profitable?
- ADP runs the higher net margin — ADP at 20.12% versus ITW at 19.32%.
- Which has been the better investment, ADP or ITW?
- Over the past 10-year, ADP delivered the higher annualized total return — ADP at 12.45% versus ITW at 11.65%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Automatic Data Processing P/E ratioIllinois Tool Works P/E ratioAutomatic Data Processing dividend yieldIllinois Tool Works dividend yieldAutomatic Data Processing ROEIllinois Tool Works ROEAutomatic Data Processing operating marginIllinois Tool Works operating marginAutomatic Data Processing revenue growthIllinois Tool Works revenue growthAutomatic Data Processing free cash flowIllinois Tool Works free cash flow
Automatic Data Processing & Illinois Tool Works appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 14, 2026.