Automatic Data Processing Inc (ADP)vsAutodesk Inc (ADSK)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
ADSK
Autodesk Inc
$242.38
+0.12%
TECHNOLOGY · Cap: $50.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 182% more annual revenue ($21.95B vs $7.79B). ADSK leads profitability with a 21.1% profit margin vs 20.1%. ADSK appears more attractively valued with a PEG of 0.85. ADSK earns a higher WallStSmart Score of 76/100 (B+).
ADP
Buy62
out of 100
Grade: C+
ADSK
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Margin of Safety
-16.4%
Fair Value
$199.79
Current Price
$242.38
$42.59 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Every $100 of equity generates 49 in profit
Earnings expanding 59.6% YoY
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 29.2%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 15.0x book value
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : ADSK
The strongest argument for ADSK centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 21.1% and operating margin at 29.2%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : ADSK
The primary concerns for ADSK are P/E Ratio, Price/Book, Debt/Equity.
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 1.33 — expect wider price swings.
ADSK is growing revenue faster at 16.1% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ADSK scores higher overall (76/100 vs 62/100), backed by strong 21.1% margins and 16.1% revenue growth. Both earn "Strong 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.
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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