Automatic Data Processing Inc (ADP)vsCerence Inc (CRNC)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
CRNC
Cerence Inc
$8.48
+0.12%
TECHNOLOGY · Cap: $401.64M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 6991% more annual revenue ($21.95B vs $309.49M). ADP leads profitability with a 20.1% profit margin vs -5.0%. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
CRNC
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Margin of Safety
+52.4%
Fair Value
$17.03
Current Price
$8.48
$8.55 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 1.4B in free cash flow
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Smaller company, higher risk/reward
Operating margin of 4.5%
Elevated debt levels
Weak financial health signals
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 : CRNC
The strongest argument for CRNC centers on Price/Book. Revenue growth of 11.8% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : CRNC
The primary concerns for CRNC are Market Cap, Operating Margin, Debt/Equity.
Key Dynamics to Monitor
ADP profiles as a mature stock while CRNC is a turnaround play — different risk/reward profiles.
CRNC carries more volatility with a beta of 3.05 — expect wider price swings.
CRNC is growing revenue faster at 11.8% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (62/100 vs 36/100), backed by strong 20.1% margins. CRNC offers better value entry with a 52.4% margin of safety. Both earn "Buy" and "Hold" 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.
Cerence Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Cerence Inc. provides assistants and innovations with artificial intelligence technology for connected and autonomous vehicles. Offers state-of-the-art software components; components connected to the cloud; tool kits; Applications; and virtual assistant for coexistence and professional services. The company is headquartered in Burlington, Massachusetts.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?