Sifting through countless of stocks in the Professional Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Automatic Data Processing, Inc. or CDW Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.
Read on to learn how Automatic Data Processing, Inc. and CDW Corporation compare based on key financial metrics to determine which better meets your investment needs.
About Automatic Data Processing, Inc. and CDW Corporation
Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) 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. This segment’s offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. Its PEO Services segment provides HR outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. This segment also provides guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers’ compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Commercial, Government, and Education. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, collaboration hardware, data storage and servers, desktop computers, and other hardware; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, collaboration and productivity applications, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, and managed services, as well as warranties. It serves business, government, education, and healthcare customers. The company was formerly known as CDW Computer Centers, Inc. and changed its name to CDW Corporation in June 2003. CDW Corporation was founded in 1984 and is based in Vernon Hills, Illinois.
Latest Professional Services and Automatic Data Processing, Inc., CDW Corporation Stock News
As of September 2, 2026, Automatic Data Processing, Inc. had a $111.7 billion market capitalization, compared to the Professional Services median of $1.1 million. Automatic Data Processing, Inc.’s stock is NA in 2026, NA in the previous five trading days and down 6.21% in the past year.
Currently, Automatic Data Processing, Inc.’s price-earnings ratio is 25.7. Automatic Data Processing, Inc.’s trailing 12-month revenue is $21.9 billion with a 20.1% net profit margin. Year-over-year quarterly sales growth most recently was 6.8%. Analysts expect adjusted earnings to reach $12.257 per share for the current fiscal year. Automatic Data Processing, Inc. currently has a 2.4% dividend yield.
Currently, CDW Corporation’s price-earnings ratio is 17.9. CDW Corporation’s trailing 12-month revenue is $23.5 billion with a 4.6% net profit margin. Year-over-year quarterly sales growth most recently was 10.0%. Analysts expect adjusted earnings to reach $10.930 per share for the current fiscal year. CDW Corporation currently has a 1.7% dividend yield.
How We Compare Automatic Data Processing, Inc. and CDW Corporation Stock Grades
Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Automatic Data Processing, Inc. and CDW Corporation’s stock grades to see how they measure up against one another.
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Automatic Data Processing, Inc. and CDW Corporation Stock Value Grades
| Company | Ticker | Value |
| Automatic Data Processing, Inc. | ADP | F |
| CDW Corporation | CDW | C |
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.
Automatic Data Processing, Inc. has a Value Score of 19, which is Ultra Expensive.
CDW Corporation has a Value Score of 45, which is Average.
The Value Stock Winner: No Clear Winner
Neither Automatic Data Processing, Inc. or CDW Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Automatic Data Processing, Inc. or CDW Corporation is the better investment when it comes to value.
Automatic Data Processing, Inc. and CDW Corporation’s Quality Grades
| Company | Ticker | Quality |
| Automatic Data Processing, Inc. | ADP | B |
| CDW Corporation | CDW | B |
Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.
Automatic Data Processing, Inc. has a Quality Score of 75, which is Strong.
CDW Corporation has a Quality Score of 62, which is Strong.
The Quality Grade Winner: It’s a Tie!
Looking at the Quality Grade breakdown above, both Automatic Data Processing, Inc. and CDW Corporation have a grade of B. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.
Automatic Data Processing, Inc. and CDW Corporation’s Momentum Grades
| Company | Ticker | Momentum |
| Automatic Data Processing, Inc. | ADP | C |
| CDW Corporation | CDW | D |
Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.
Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.
Automatic Data Processing, Inc. has a Momentum Score of 53, which is Average.
CDW Corporation has a Momentum Score of 38, which is Weak.
The Momentum Stock Winner: No Clear Winner
Neither Automatic Data Processing, Inc. or CDW Corporation has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Automatic Data Processing, Inc. or CDW Corporation is the better investment when it comes to momentum.
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Other Automatic Data Processing, Inc. and CDW Corporation Grades
In addition to Value, Quality and Momentum, A+ Investor also provides grades for Growth and Estimate Revisions.
Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).
Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.
These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Automatic Data Processing, Inc. and CDW Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.
So, Which Is the Better Investment, Automatic Data Processing, Inc. or CDW Corporation Stock?
Overall, Automatic Data Processing, Inc. stock has a Value Score of 19, Momentum Score of 53 and Quality Score of 75.
CDW Corporation stock has a Value Score of 45, Momentum Score of 38 and Quality Score of 62.
Comparing Automatic Data Processing, Inc. and CDW Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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