Automatic Data Processing Inc (ADP)vsANSYS Inc (ANSS)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
ANSS
ANSYS Inc
$374.30
0.00%
TECHNOLOGY · Cap: $32.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 750% more annual revenue ($21.95B vs $2.58B). ANSS leads profitability with a 23.0% profit margin vs 20.1%. ANSS appears more attractively valued with a PEG of 2.47. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
ANSS
Buy56
out of 100
Grade: C
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
-37.5%
Fair Value
$272.15
Current Price
$374.30
$102.15 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
Safe zone — low bankruptcy risk
Keeps 23 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Earnings expanding 47.7% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : ANSS
The strongest argument for ANSS centers on Altman Z-Score, Profit Margin, Debt/Equity. Profitability is solid with margins at 23.0% and operating margin at 11.7%.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : ANSS
The primary concerns for ANSS are PEG Ratio, P/E Ratio. A P/E of 55.5x leaves little room for execution misses.
Key Dynamics to Monitor
ANSS carries more volatility with a beta of 1.19 — expect wider price swings.
ANSS is growing revenue faster at 8.2% — 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
ADP scores higher overall (62/100 vs 56/100), backed by strong 20.1% margins. 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.
Automatic Data Processing Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.
ANSYS Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Ansys, Inc. is an American company based in Canonsburg, Pennsylvania. It develops and markets multiphysics engineering simulation software for product design, testing and operation and offers its products and services to customers worldwide.
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