Automatic Data Processing Inc (ADP)vsDHI Group Inc (DHX)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
DHX
DHI Group Inc
$4.85
-1.62%
TECHNOLOGY · Cap: $211.24M
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
Buy62
out of 100
Grade: C+
DHX
Buy50
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
+38.3%
Fair Value
$3.89
Current Price
$4.85
$0.96 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
Earnings expanding 36.8% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
1.0% margin — thin
Premium valuation, high expectations priced in
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 : 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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