WallStSmart

Automatic Data Processing Inc (ADP)vsSalesforce.com Inc (CRM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 100% more annual revenue ($43.94B vs $21.95B). CRM leads profitability with a 22.0% profit margin vs 20.1%. CRM appears more attractively valued with a PEG of 0.90. CRM earns a higher WallStSmart Score of 74/100 (B).

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.53

CRM

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 8.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.50
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-66.8%)

Margin of Safety

-66.8%

Fair Value

$163.78

Current Price

$269.64

$105.86 premium

UndervaluedFair: $163.78Overvalued
CRMUndervalued (+66.9%)

Margin of Safety

+66.9%

Fair Value

$719.75

Current Price

$236.42

$483.33 discount

UndervaluedFair: $719.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$106.57B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

CRM6 strengths · Avg: 9.0/10
Market CapQuality
$203.87B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
118.9%10/10

Earnings expanding 118.9% YoY

Return on EquityProfitability
25.2%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

PEG RatioValuation
0.908/10

Growing faster than its price suggests

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

Areas to Watch

ADP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Price/BookValuation
17.8x4/10

Trading at 17.8x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.532/10

Distress zone — elevated risk

CRM2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

Debt/EquityHealth
1.093/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : CRM

The strongest argument for CRM centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 22.0% and operating margin at 21.4%. Revenue growth of 10.8% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, Price/Book, Piotroski F-Score.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score, Debt/Equity.

Key Dynamics to Monitor

CRM carries more volatility with a beta of 1.20 — expect wider price swings.

CRM is growing revenue faster at 10.8% — sustainability is the question.

ADP generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CRM scores higher overall (74/100 vs 62/100), backed by strong 22.0% margins and 10.8% 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.

Salesforce.com Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Salesforce.com, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management (CRM) service and also provides a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.

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