Automatic Data Processing (NYSE: CLGX) and Corelogic (NYSE:CLGX) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.
Automatic Data Processing pays an annual dividend of $2.76 per share and has a dividend yield of 1.9%. Corelogic does not pay a dividend. Automatic Data Processing pays out 63.4% of its earnings in the form of a dividend. Automatic Data Processing has increased its dividend for 43 consecutive years.
Automatic Data Processing has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Corelogic has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Automatic Data Processing and Corelogic, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Automatic Data Processing||0||7||8||0||2.53|
Automatic Data Processing currently has a consensus price target of $140.29, indicating a potential downside of 4.75%. Corelogic has a consensus price target of $49.13, indicating a potential downside of 2.97%. Given Corelogic’s higher probable upside, analysts clearly believe Corelogic is more favorable than Automatic Data Processing.
Institutional and Insider Ownership
79.0% of Automatic Data Processing shares are held by institutional investors. Comparatively, 90.9% of Corelogic shares are held by institutional investors. 0.3% of Automatic Data Processing shares are held by company insiders. Comparatively, 1.2% of Corelogic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Automatic Data Processing and Corelogic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Automatic Data Processing||12.16%||50.17%||4.78%|
Valuation & Earnings
This table compares Automatic Data Processing and Corelogic’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||$13.33 billion||4.84||$1.62 billion||$4.35||33.86|
|Corelogic||$1.85 billion||2.21||$152.16 million||$1.95||25.96|
Automatic Data Processing has higher revenue and earnings than Corelogic. Corelogic 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.
Automatic Data Processing beats Corelogic on 12 of the 17 factors compared between the two stocks.
About Automatic Data Processing
Automatic Data Processing, Inc. provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions. Its offerings include payroll, benefits administration, talent management, HR management, time and attendance management, insurance, retirement, and compliance services. This segment provides a range of solutions, which businesses of various types and sizes can use to activate talent, as well as recruit, pay, manage, and retain their workforce. It serves approximately 630,000 clients through its cloud-based strategic software as a service offering. The PEO Services segment provides HR outsourcing solutions through a co-employment model. This segment offers HR administration services, including employee recruitment, payroll and tax administration, time and attendance management, benefits administration, employee training and development, online HR management tools, and employee leave administration. It also provides employee benefits that enable eligible worksite employees with access to a 401(k) retirement savings plan, health savings accounts, flexible spending accounts, group term life and disability coverage, and an employee assistance program, as well as group health, dental, and vision coverage. In addition, this segment offers employer liability management services comprising workers' compensation program, unemployment claims management, safety compliance guidance and access to safety training, access to employment practices liability insurance, and guidance on compliance with the United States federal, state, and local employment laws and regulations. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
CoreLogic, Inc. provides property information, analytics, and data-enabled services in North America, Western Europe, and the Asia Pacific. The company's Property Intelligence segment owns or licenses loan information, property sales and characteristic information, property risk and replacement cost, natural hazard data, geospatial data, parcel maps, and mortgage-backed securities information. This segment's products and services include data licensing and analytics, data-enabled advisory services, platform solutions, and valuation solutions. This segment delivers information directly to clients in a standard format over the Web, through customizable software platforms, or in bulk data form. CoreLogic, Inc.'s Risk Management and Work Flow segment owns or licenses loan information, property sales and characteristic information, natural hazard data, parcel maps, employment verification, criminal records, and eviction records. It offers credit and screening solutions, which provide comprehensive data about credit history, income verification, home address history, evictions, criminal records, and additional proprietary sources; and property tax processing solutions to advise mortgage originators and servicers. This segment also provides flood data services, such as flood zone determinations primarily to mortgage lenders; and software and workflow platforms to the financial services market through a suite of enterprise lending automation services. The company provides its services to mortgage lenders, brokers, credit unions, commercial banks, investment banks, fixed-income investors, real estate agents, MLS companies, property and casualty insurance companies, government agencies, and government-sponsored enterprises. The company was formerly known as The First American Corporation and changed its name to CoreLogic, Inc. in June 2010. CoreLogic, Inc. was incorporated in 1894 and is headquartered in Irvine, California.
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