WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 92% more annual revenue ($41.52B vs $21.60B). ADP leads profitability with a 20.1% profit margin vs 18.0%. CRM appears more attractively valued with a PEG of 1.01. CRM earns a higher WallStSmart Score of 68/100 (B-).

ADP

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 4.7Quality: 5.8
Piotroski: 6/9Altman Z: 1.53

CRM

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 7.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPOvervalued (-9.7%)

Margin of Safety

-9.7%

Fair Value

$195.13

Current Price

$213.00

$17.87 premium

UndervaluedFair: $195.13Overvalued
CRMUndervalued (+74.9%)

Margin of Safety

+74.9%

Fair Value

$743.47

Current Price

$181.82

$561.65 discount

UndervaluedFair: $743.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 9.2/10
Return on EquityProfitability
71.2%10/10

Every $100 of equity generates 71 in profit

Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

Market CapQuality
$85.14B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

CRM4 strengths · Avg: 8.5/10
Market CapQuality
$152.44B9/10

Large-cap with strong market position

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$5.32B8/10

Generating 5.3B in free cash flow

Areas to Watch

ADP3 concerns · Avg: 4.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Price/BookValuation
13.4x4/10

Trading at 13.4x book value

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

CRM1 concerns · Avg: 4.0/10
Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : CRM

The strongest argument for CRM centers on Market Cap, Debt/Equity, Price/Book. Profitability is solid with margins at 18.0% and operating margin at 19.2%. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score.

Key Dynamics to Monitor

CRM carries more volatility with a beta of 1.14 — expect wider price swings.

CRM is growing revenue faster at 12.1% — sustainability is the question.

CRM generates stronger free cash flow (5.3B), providing more financial flexibility.

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

Bottom Line

ADP scores higher overall (68/100 vs 68/100), backed by strong 20.1% margins. CRM offers better value entry with a 74.9% margin of safety. 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.

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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