WallStSmart

Automatic Data Processing Inc (ADP)vsDocebo Inc (DCBO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 8505% more annual revenue ($21.60B vs $251.01M). ADP leads profitability with a 20.1% profit margin vs 13.7%. DCBO trades at a lower P/E of 16.7x. ADP earns a higher WallStSmart Score of 66/100 (B-).

ADP

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 4.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.53

DCBO

Buy

51

out of 100

Grade: C-

Growth: 8.0Profit: 6.0Value: 7.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-60.5%)

Margin of Safety

-60.5%

Fair Value

$158.82

Current Price

$263.87

$105.05 premium

UndervaluedFair: $158.82Overvalued
DCBOUndervalued (+71.4%)

Margin of Safety

+71.4%

Fair Value

$65.90

Current Price

$22.02

$43.88 discount

UndervaluedFair: $65.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 9.2/10
Return on EquityProfitability
68.4%10/10

Every $100 of equity generates 68 in profit

Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

Market CapQuality
$97.18B9/10

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

DCBO4 strengths · Avg: 9.5/10
Return on EquityProfitability
132.9%10/10

Every $100 of equity generates 133 in profit

EPS GrowthGrowth
141.7%10/10

Earnings expanding 141.7% YoY

Debt/EquityHealth
-136.0410/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

Areas to Watch

ADP3 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Price/BookValuation
16.6x4/10

Trading at 16.6x book value

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

DCBO3 concerns · Avg: 2.0/10
Market CapQuality
$482.02M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

Operating MarginProfitability
-0.1%1/10

Operating margin of -0.1%

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 : DCBO

The strongest argument for DCBO centers on Return on Equity, EPS Growth, Debt/Equity. Revenue growth of 14.5% demonstrates continued momentum.

Bear Case : ADP

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

Bear Case : DCBO

The primary concerns for DCBO are Market Cap, Altman Z-Score, Operating Margin.

Key Dynamics to Monitor

ADP profiles as a mature stock while DCBO is a value play — different risk/reward profiles.

ADP carries more volatility with a beta of 0.84 — expect wider price swings.

DCBO is growing revenue faster at 14.5% — sustainability is the question.

ADP generates stronger free cash flow (2.0B), providing more financial flexibility.

Bottom Line

ADP scores higher overall (66/100 vs 51/100), backed by strong 20.1% margins. DCBO offers better value entry with a 71.4% margin of safety. 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.

Docebo Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Docebo Inc. provides a cloud-based learning management system to train internal and external workforce, partners, and customers in North America, Europe, and the Asia-Pacific region. The company is headquartered in Toronto, Canada.

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