Automatic Data Processing Inc (ADP)vsSalesforce.com Inc (CRM)
ADP
Automatic Data Processing Inc
$269.64
-0.11%
TECHNOLOGY · Cap: $106.57B
CRM
Salesforce.com Inc
$236.42
-1.33%
TECHNOLOGY · Cap: $203.87B
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
Buy62
out of 100
Grade: C+
CRM
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.8%
Fair Value
$163.78
Current Price
$269.64
$105.86 premium
Margin of Safety
+66.9%
Fair Value
$719.75
Current Price
$236.42
$483.33 discount
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 1.2B in free cash flow
Mega-cap, among the largest globally
Earnings expanding 118.9% YoY
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 21.4%
Areas to Watch
Expensive relative to growth rate
Trading at 17.8x book value
Weak financial health signals
Distress zone — elevated risk
Distress zone — elevated risk
Elevated debt levels
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 : 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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