WIDE MOAT STOCKS COMPARISON

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Stock Comparison

Automatic Data Processing, Inc. vs Paychex, Inc.

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Automatic Data Processing, Inc.

ADP · NASDAQ

Market cap (USD)$111B
Gross margin (TTM)48.2%
Operating margin (TTM)18.6%
Net margin (TTM)20.1%
SectorTechnology
IndustrySoftware - Application
CountryUS
Data as of2026-08-23
69/100
Moat score

Weighted across the company's segments.

Full stock profile

Dive deeper into Automatic Data Processing, Inc.'s moat claims, evidence, and risks.

View ADP analysis

Paychex, Inc.

PAYX · NASDAQ Global Select Market

Market cap (USD)$43.3B
Gross margin (TTM)74.3%
Operating margin (TTM)38.6%
Net margin (TTM)27%
SectorIndustrials
IndustryStaffing & Employment Services
CountryUS
Data as of2026-08-23
72/100
Moat score

Weighted across the company's segments.

Full stock profile

Dive deeper into Paychex, Inc.'s moat claims, evidence, and risks.

View PAYX analysis

Comparison highlights

  • Moat score gap: Paychex, Inc. leads (72 / 100 vs 69 / 100 for Automatic Data Processing, Inc.).
  • Segment focus: Automatic Data Processing, Inc. has 2 segments (67.5% in Employer Services); Paychex, Inc. has 3 segments (74.8% in Management Solutions).
  • Primary market structure: Competitive vs Oligopoly. Pricing power: Moderate vs Moderate.
  • Moat breadth: Automatic Data Processing, Inc. has 5 moat types across 4 domains; Paychex, Inc. has 4 across 3.

Primary market context

Automatic Data Processing, Inc.

Employer Services

Market

Payroll processing and cloud HCM (HR, time, talent, tax, benefits) software and outsourcing

Geography

Global

Customer

Businesses (SMB to large enterprise)

Role

SaaS and managed services provider

Revenue share

67.5%

Paychex, Inc.

Management Solutions

Market

Payroll processing and integrated HCM solutions for SMB and mid-market employers

Geography

United States (primarily)

Customer

Employers (SMB and mid-market)

Role

HCM SaaS + outsourced payroll/HR service provider

Revenue share

74.8%

Side-by-side metrics

Automatic Data Processing, Inc.
Paychex, Inc.
Ticker / Exchange
ADP - NASDAQ
PAYX - NASDAQ Global Select Market
Market cap (USD)
$111B
$43.3B
Gross margin (TTM)
48.2%
74.3%
Operating margin (TTM)
18.6%
38.6%
Net margin (TTM)
20.1%
27%
Sector
Technology
Industrials
Industry
Software - Application
Staffing & Employment Services
HQ country
US
US
Primary segment
Employer Services
Management Solutions
Market structure
Competitive
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
69 / 100
72 / 100
Moat domains
Demand, Legal, Supply, Financial
Demand, Supply, Financial
Last update
2026-09-05
2026-09-05

Moat coverage

Shared moat types

Switching Costs GeneralFloat Prepayment

Automatic Data Processing, Inc. strengths

Compliance AdvantageScale Economies Unit CostRegulated Standards Pipe

Paychex, Inc. strengths

Data Workflow LockinService Field Network

Segment mix

Automatic Data Processing, Inc. segments

Full profile >

Employer Services

Competitive

67.5%

Professional Employer Organization (PEO) Services

Competitive

32.5%

Paychex, Inc. segments

Full profile >

Management Solutions

Oligopoly

74.8%

PEO and Insurance Solutions

Competitive

22%

Client funds float (interest on funds held for clients)

Oligopoly

3.2%

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.