Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, leading payroll processor Automatic Data Processing (NYSE:ADP) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at ADP's business, and see what CAPS investors are saying about the stock right now.

ADP facts

Headquarters (Founded)

Roseland, New Jersey (1949)

Market Cap

$16.78 billion


Data Processing and Outsourced Services

TTM Revenue

$8.78 billion


CEO Gary Butler
CFO Christopher Reidy

Return on Equity (average last three years)



Administaff (NYSE:ASF)

CAPS members bullish on ADP also bullish on

Microsoft (NASDAQ:MSFT)
Procter & Gamble (NYSE:PG)

CAPS members bearish on ADP also bearish on

Capital One Financial (NYSE:COF)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 139 of the 145 All-Star members who have rated ADP -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include carterhiggins and jawilde, both of whom are ranked in the top 20% of our community.

Last month, carterhiggins had these bullish things to say about ADP:

Financially reserved firm-nothing crazy going on with their books. Old school business that has a chance for good long term growth, provided management keeps making sound decisions about technology and new business lines.

A more recent pitch from jawilde last week follows that line of thinking, elaborating on the stock's downturn-defending qualities:

I've tracked ADP for some time. Solid blue-chip company with a wide moat; it costs companies plenty to switch payroll processors. Some vunerability to a recession but not bad. Finally pulled the trigger and bought for my personal account. At present price, the ~3% dividend yield will help compensate for holding.

What do you think about ADP, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Paychex, Administaff, and Microsoft are Motley Fool Inside Value picks. Paychex is also an Income Investor choice, and Administaff has been singled out by Motley Fool Hidden Gems Pay Dirt. The Fool's disclosure policy always gets a perfect score.