WallStSmart

Automatic Data Processing Inc (ADP)vsAutodesk Inc (ADSK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 188% more annual revenue ($21.60B vs $7.51B). ADP leads profitability with a 20.1% profit margin vs 19.5%. ADSK appears more attractively valued with a PEG of 0.81. ADSK earns a higher WallStSmart Score of 74/100 (B).

ADP

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 4.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.53

ADSK

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.0Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 0.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-60.5%)

Margin of Safety

-60.5%

Fair Value

$158.82

Current Price

$263.87

$105.05 premium

UndervaluedFair: $158.82Overvalued
ADSKSignificantly Overvalued (-22.1%)

Margin of Safety

-22.1%

Fair Value

$190.48

Current Price

$245.25

$54.77 premium

UndervaluedFair: $190.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 9.2/10
Return on EquityProfitability
68.4%10/10

Every $100 of equity generates 68 in profit

Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

Market CapQuality
$97.18B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

ADSK5 strengths · Avg: 8.8/10
Return on EquityProfitability
45.9%10/10

Every $100 of equity generates 46 in profit

EPS GrowthGrowth
231.4%10/10

Earnings expanding 231.4% YoY

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

Revenue GrowthGrowth
18.4%8/10

18.4% revenue growth

Areas to Watch

ADP3 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Price/BookValuation
16.6x4/10

Trading at 16.6x book value

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

ADSK3 concerns · Avg: 3.3/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.2x4/10

Trading at 16.2x book value

Altman Z-ScoreHealth
0.952/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ADP

The strongest argument for ADP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 20.1% and operating margin at 30.2%.

Bull Case : ADSK

The strongest argument for ADSK centers on Return on Equity, EPS Growth, PEG Ratio. Profitability is solid with margins at 19.5% and operating margin at 29.5%. Revenue growth of 18.4% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.

Bear Case : ADSK

The primary concerns for ADSK are P/E Ratio, Price/Book, Altman Z-Score.

Key Dynamics to Monitor

ADP profiles as a mature stock while ADSK is a growth play — different risk/reward profiles.

ADSK carries more volatility with a beta of 1.32 — expect wider price swings.

ADSK is growing revenue faster at 18.4% — sustainability is the question.

ADP generates stronger free cash flow (2.0B), providing more financial flexibility.

Bottom Line

ADSK scores higher overall (74/100 vs 66/100), backed by strong 19.5% margins and 18.4% revenue growth. Both earn "Strong Buy" and "Strong 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.

Automatic Data Processing Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.

Autodesk Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Autodesk, Inc. is an American multinational software corporation that makes software products and services for the architecture, engineering, construction, manufacturing, media, education, and entertainment industries. Autodesk is headquartered in San Rafael, California.

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