Automatic Data Processing Inc (ADP)vsBlackbaud Inc (BLKB)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
BLKB
Blackbaud Inc
$42.18
+17.39%
TECHNOLOGY · Cap: $1.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 1795% more annual revenue ($21.60B vs $1.14B). ADP leads profitability with a 20.1% profit margin vs 12.4%. BLKB appears more attractively valued with a PEG of 0.36. BLKB earns a higher WallStSmart Score of 68/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
BLKB
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$263.87
$105.05 premium
Margin of Safety
+36.4%
Fair Value
$79.25
Current Price
$42.18
$37.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Strong operational efficiency at 30.2%
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Generating 2.0B in free cash flow
Growing faster than its price suggests
Attractively priced relative to earnings
Every $100 of equity generates 42 in profit
Earnings expanding 651.0% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
4.2% revenue growth
Smaller company, higher risk/reward
Trading at 55.5x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : BLKB
The strongest argument for BLKB centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.36 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : BLKB
The primary concerns for BLKB are Revenue Growth, Market Cap, Price/Book. Debt-to-equity of 34.33 is elevated, increasing financial risk.
Key Dynamics to Monitor
ADP profiles as a mature stock while BLKB is a value play — different risk/reward profiles.
BLKB carries more volatility with a beta of 1.01 — expect wider price swings.
ADP is growing revenue faster at 7.0% — sustainability is the question.
ADP generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
BLKB scores higher overall (68/100 vs 66/100). 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.
Blackbaud Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, businesses, educational institutions, healthcare organizations, and other social concern entities in the United States and internationally. The company is headquartered in Charleston, South Carolina.
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