WallStSmart

Automatic Data Processing Inc (ADP)vsDHI Group Inc (DHX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 17524% more annual revenue ($21.95B vs $124.53M). ADP leads profitability with a 20.1% profit margin vs 1.0%. DHX appears more attractively valued with a PEG of 1.56. ADP earns a higher WallStSmart Score of 62/100 (C+).

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

DHX

Buy

50

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 5.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$285.37

$120.19 premium

UndervaluedFair: $165.18Overvalued
DHXUndervalued (+38.3%)

Margin of Safety

+38.3%

Fair Value

$3.89

Current Price

$4.85

$0.96 discount

UndervaluedFair: $3.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$113.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

DHX2 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
36.8%8/10

Earnings expanding 36.8% YoY

Areas to Watch

ADP4 concerns · Avg: 3.8/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
18.8x4/10

Trading at 18.8x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

DHX4 concerns · Avg: 3.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Market CapQuality
$211.24M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

P/E RatioValuation
163.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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 : DHX

The strongest argument for DHX centers on Price/Book, EPS Growth.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : DHX

The primary concerns for DHX are PEG Ratio, Market Cap, Profit Margin. A P/E of 163.0x leaves little room for execution misses. Thin 1.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

DHX carries more volatility with a beta of 1.24 — 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 50/100), backed by strong 20.1% margins. DHX offers better value entry with a 38.3% margin of safety. 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.

DHI Group Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

DHI Group, Inc. provides data, knowledge and job connections through specialized services for technology professionals in the United States, the United Kingdom, the rest of Europe, the Middle East, Africa, Asia Pacific and internationally. The company is headquartered in Centennial, Colorado.

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