Automatic Data Processing vs Paylocity
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KIRA’s take AI analyst
I put Automatic Data Processing and Paylocity side by side, using each one’s latest annual report. Here is what stands out:
- Automatic Data Processing is the larger business, with $21.9B of revenue in fiscal 2026 against $1.8B for Paylocity, about 12 times as much.
- Paylocity grew revenue faster (11.0%, against 6.7%).
- Paylocity turned more of its sales into free cash flow (28.1% FCF margin, against 23.9%).
- Automatic Data Processing earned a higher return on the capital invested in it (68.8%, against 26.5%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Automatic Data Processing
ADP
4/10
Net marginReturn on capitalReturn on equityPiotroski F-score
Paylocity
PCTY
6/10
Revenue growth5-year growthGross marginFCF marginNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | ADP FY26 | PCTY FY26 |
|---|---|---|
| Size | ||
| Market cap | $121.4B | $9.7B |
| Revenue | $21.9B | $1.8B |
| Free cash flow | $5.2B | $497M |
| Net income | $4.4B | $270M |
| Growth | ||
| Revenue growth | 6.7% | 11.0% |
| 5-year growth | 7.9% | 22.8% |
| Share count change | −1.3% | −3.2% |
| Profitability | ||
| Gross margin | 46.4% | 69.2% |
| Operating margin | — | 21.8% |
| Net margin | 20.1% | 15.2% |
| FCF margin | 23.9% | 28.1% |
| Return on capital | 68.8% | 26.5% |
| Return on equity | 72.2% | 22.0% |
| Balance sheet | ||
| Net debt | $734M | −$191M |
| Net debt / EBITDA | 0.1x | −0.4x |
| Dividends and buybacks | $4.7B | $398M |
| Valuation & quality | ||
| P/E | — | — |
| Piotroski F-score | 9 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.