ADP Or PAYX: Which Outsourcing Services Firm Is A Better Buy?
Zacks Investment Research | Dec 27, 2018 09:43PM ET
The outsourcing industry is currently benefitting from higher demand for expertise to improve efficiency and reduce costs.
Post the 2017 tax reform, the U.S. outsourcing companies are increasingly allocating tax savings toward investments in digital and artificial intelligence as well as cloud and blockchain. This is enhancing their service quality and spurring demand.
Considering this backdrop, it is not a bad idea to undertake a comparative analysis of two Outsourcing Services stock — Automatic Data Processing (NASDAQ:ADP) and Paychex, Inc. (NASDAQ:PAYX) . While ADP has a market capitalization of $55.9 billion, the same for Paychex is $23.1 billion.
As the stocks carry a Zacks Rank #2 (Buy), we are using other parameters to provide investors a better insight.
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