Automatic Data Processing Inc (ADP)vsDonnelley Financial Solutions Inc (DFIN)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
DFIN
Donnelley Financial Solutions Inc
$53.12
-0.64%
TECHNOLOGY · Cap: $1.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 2723% more annual revenue ($21.95B vs $777.50M). ADP leads profitability with a 20.1% profit margin vs 4.5%. DFIN appears more attractively valued with a PEG of 0.97. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
DFIN
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$285.37
$120.19 premium
Margin of Safety
-57.3%
Fair Value
$26.23
Current Price
$53.12
$26.89 premium
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
Growing faster than its price suggests
Strong operational efficiency at 25.8%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
Premium valuation, high expectations priced in
2.8% revenue growth
Smaller company, higher risk/reward
4.5% margin — thin
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 : DFIN
The strongest argument for DFIN centers on PEG Ratio, Operating Margin. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : DFIN
The primary concerns for DFIN are P/E Ratio, Revenue Growth, Market Cap. Thin 4.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
ADP profiles as a mature stock while DFIN is a value play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
ADP is growing revenue faster at 6.8% — 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 57/100), backed by strong 20.1% margins. Both earn "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.
Donnelley Financial Solutions Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Donnelley Financial Solutions, Inc. is a global risk and compliance solutions company. The company is headquartered in Chicago, Illinois.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?