Who are ADP's Main Competitors?

Automatic Data Processing Inc. (NASDAQ: ADP) offers human capital management solutions such as payroll services, benefits administration, compliance solutions and human capital management through its Employer Services segment. It delivers solutions as a cloud-based software-as-a-service (SaaS). Through its Professional Employer Organization (PEO) segment, ADP offers outsourcing services for human resources (HR) and benefit solutions, similar to those addressed by the Employer Services segment.

ADP's Employer Services and PEO segments operate in highly competitive environments with large, diversified players and smaller companies dedicated to these services. ADP reported Q2 revenue of $3.7 billion in 2021, up 1% for the Q2 2020. 

SAP

SAP SE (NYSE: SAP) is a German enterprise software company with a diverse suite of enterprise resource planning products. Among the chief offerings are human capital management solutions, often deployed through the cloud. Cloud and software contributed 85% of total revenue in 2020. SAP SE reported 2020 revenue of €31.1 billion and net income of €5.8 billion, and the company's market capitalization was €143.6 billion as of March 19, 2021.

Workday

Workday Inc. (NYSE: WDAY) provides a suite of analytics, financial management and human capital management cloud applications. For the year ending in January 2021, 88% of the company's revenue was attributed to subscription services, with professional service revenues making up the balance. Workday reported a yearly revenue of $4.32 billion and net losses of $282 million for the 12 months ending January 2021. WDAY had a market cap of $61 billion as of March 19, 2021.

UKG (Ultimate Kronos Group)

UKG (Ultimate Kronos Group) is one of the largest vendors of cloud-based human capital management solutions with its UKGPro product suite. The offering includes HR, payroll, analytics, and benefits management products. In 2017, 85% of the company's revenues were attributed to recurring and license sources rather than services. The Ultimate Kronos Group reported total revenue nearing $3 billion and earnings before interest, depreciation, and amortization of nearly $770 million in 2020.

Oracle

Oracle Corporation (NYSE: ORCL) is a diversified corporate information technology provider. Its broad product and service offering includes database software, cloud infrastructure, hardware systems, application software, and related services. HCM software is part of Oracle's software-as-a-service portfolio, which is marketed alongside enterprise resource planning, supply chain management, and related tools. Oracle reported total revenue of $9.8 billion during the second fiscal quarter of 2021. The company's market cap as of March 19, 2021, was $191 billion.

Paychex

Paychex (NASDAQ: PAYX) provides HR, payroll, and benefits outsourcing services to small- and mid-sized businesses located in the United States and Germany. Paychex offerings include a broad range of human capital management and PEO services with integrated multi-platform software-as-a-service. Over the second fiscal quarter of 2021, Paychex reported total revenue of $983.7 million. PAYX's market cap was $34.5 billion as of March 19, 2021.

Insperity

Insperity Inc. (NYSE: NSP) provides HR services to small- and medium-sized businesses, collectively falling under the outsourced PEO umbrella. These services include human capital management, payroll services, financial management, and other related solutions to help clients optimize their deployed resources. The company bundles cloud and native software applications with these outsourced services to complete a holistic offering. Insperity reported revenue of $4.3 billion and net income of $138.2 million during 2020, and the company's market cap as of March 19, 2021, was $3.6 billion.

TriNet Group

TriNet Group Inc. (NYSE: TNET) provides outsourced HR functions to small- and medium-sized businesses. These functions include payroll, human capital consulting and benefits management, which the company deploys through a cloud platform. Insurance services are the largest contributor to revenues, generating 86% of revenue over 2020. Over that period, TriNet reported revenue of $1.1 billion and net income of $221 million, and the company's market cap was $5.3 billion as of March 19, 2021.