Financial Survey: Mullen Automotive (NASDAQ:MULN) versus Automatic Data Processing (NASDAQ:ADP)

Mullen Automotive (NASDAQ:MULN) and Automatic Data Processing (NASDAQ:ADP) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mullen Automotive and Automatic Data Processing, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mullen Automotive 0 0 0 0 N/A
Automatic Data Processing 1 7 3 0 2.18

Automatic Data Processing has a consensus price target of $232.36, indicating a potential upside of 1.58%. Given Automatic Data Processing’s higher probable upside, analysts plainly believe Automatic Data Processing is more favorable than Mullen Automotive.

Profitability

This table compares Mullen Automotive and Automatic Data Processing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mullen Automotive -2.88% N/A -157.39%
Automatic Data Processing 17.55% 47.31% 5.03%

Risk & Volatility

Mullen Automotive has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, Automatic Data Processing has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Earnings and Valuation

This table compares Mullen Automotive and Automatic Data Processing’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mullen Automotive $65.71 million 1.43 -$44.24 million ($0.66) -6.11
Automatic Data Processing $15.01 billion 6.42 $2.60 billion $6.32 36.19

Automatic Data Processing has higher revenue and earnings than Mullen Automotive. Mullen Automotive is trading at a lower price-to-earnings ratio than Automatic Data Processing, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

21.6% of Mullen Automotive shares are owned by institutional investors. Comparatively, 78.3% of Automatic Data Processing shares are owned by institutional investors. 13.2% of Mullen Automotive shares are owned by company insiders. Comparatively, 0.3% of Automatic Data Processing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Automatic Data Processing beats Mullen Automotive on 11 of the 13 factors compared between the two stocks.

About Mullen Automotive

Mullen Automotive Inc. operates as an electric car company. It develops electric vehicles and energy solutions. The company was founded by David Michery in 2014 and is headquartered in Brea, California.

About Automatic Data Processing

Automatic Data Processing, Inc. engages in the provision of business outsourcing solutions specializes in cloud-based human capital management. It operates through the following business segments: Employer Services; and Professional Employer Organization Services; and Other. The Employer Services segment provides clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of human resources outsourcing and technology-based human capital management solutions, including strategic, cloud-based platforms. The Professional Employer Organization Services segment offers small and mid-sized businesses a human resources outsourcing solution through a co-employment mode. The company was founded by Henry Taub in 1949 and is headquartered in Roseland, NJ.

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