Automatic Data Processing Inc (ADP)vsAlkami Technology Inc (ALKT)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
ALKT
Alkami Technology Inc
$15.53
+1.11%
TECHNOLOGY · Cap: $1.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 4382% more annual revenue ($21.95B vs $489.73M). ADP leads profitability with a 20.1% profit margin vs -9.2%. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
ALKT
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$285.37
$120.19 premium
Margin of Safety
+44.3%
Fair Value
$30.29
Current Price
$15.53
$14.76 discount
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
15.9% revenue growth
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
0.0% earnings growth
Smaller company, higher risk/reward
Weak financial health signals
ROE of -14.1% — below average capital efficiency
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 : ALKT
The strongest argument for ALKT centers on Revenue Growth. Revenue growth of 15.9% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : ALKT
The primary concerns for ALKT are EPS Growth, Market Cap, Piotroski F-Score.
Key Dynamics to Monitor
ADP profiles as a mature stock while ALKT is a growth play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
ALKT is growing revenue faster at 15.9% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (62/100 vs 32/100), backed by strong 20.1% margins. ALKT offers better value entry with a 44.3% margin of safety. Both earn "Buy" and "Avoid" 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.
Alkami Technology Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Alkami Technology, Inc. offers a cloud-based digital banking platform to serve banks and credit unions in the United States. The company is headquartered in Plano, Texas.
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