ADEIA CORP (ADEA)vsAutomatic Data Processing Inc (ADP)
ADEA
ADEIA CORP
$22.75
+0.22%
TECHNOLOGY · Cap: $2.25B
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 4561% more annual revenue ($21.95B vs $470.87M). ADEA leads profitability with a 26.1% profit margin vs 20.1%. ADEA appears more attractively valued with a PEG of 1.51. ADEA earns a higher WallStSmart Score of 64/100 (C+).
ADEA
Buy64
out of 100
Grade: C+
ADP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.3%
Fair Value
$36.08
Current Price
$22.75
$13.33 discount
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.0%
Every $100 of equity generates 29 in profit
Keeps 26 of every $100 in revenue as profit
Every $100 of equity generates 73 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 23.5%
Generating 1.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Grey zone — moderate risk
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ADEA
The strongest argument for ADEA centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 26.1% and operating margin at 32.0%. Revenue growth of 12.1% demonstrates continued momentum.
Bull Case : ADP
The strongest argument for ADP centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 23.5%.
Bear Case : ADEA
The primary concerns for ADEA are PEG Ratio, EPS Growth, Altman Z-Score.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
ADEA carries more volatility with a beta of 0.92 — expect wider price swings.
ADEA is growing revenue faster at 12.1% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADEA scores higher overall (64/100 vs 62/100), backed by strong 26.1% margins and 12.1% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
ADEIA CORP
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Adeia Inc., is a global consumer and entertainment products/solutions licensing company. The company is headquartered in San Jose, California.
Automatic Data Processing Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.
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