WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 97% more annual revenue ($43.94B vs $22.26B). CRM leads profitability with a 22.0% profit margin vs 20.3%. CRM appears more attractively valued with a PEG of 0.82. CRM earns a higher WallStSmart Score of 75/100 (B+).

ADP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 3.3Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

CRM

Strong Buy

75

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 (-74.7%)

Margin of Safety

-74.7%

Fair Value

$168.19

Current Price

$303.35

$135.16 premium

UndervaluedFair: $168.19Overvalued
CRMUndervalued (+67.9%)

Margin of Safety

+67.9%

Fair Value

$713.65

Current Price

$222.41

$491.24 discount

UndervaluedFair: $713.65Overvalued

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
$116.00B9/10

Large-cap with strong market position

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

CRM6 strengths · Avg: 8.8/10
EPS GrowthGrowth
118.9%10/10

Earnings expanding 118.9% YoY

Market CapQuality
$188.61B9/10

Large-cap with strong market position

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
0.828/10

Growing faster than its price suggests

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

Areas to Watch

ADP4 concerns · Avg: 2.8/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.702/10

Expensive relative to growth rate

Price/BookValuation
23.6x2/10

Trading at 23.6x book value

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 20.3% and operating margin at 26.7%.

Bull Case : CRM

The strongest argument for CRM centers on EPS Growth, Market Cap, 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 P/E Ratio, Piotroski F-Score, PEG Ratio.

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 1.26 — expect wider price swings.

CRM is growing revenue faster at 10.8% — 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

CRM scores higher overall (75/100 vs 64/100), 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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