WallStSmart

Automatic Data Processing Inc (ADP)vsDaily Journal Corp (DJCO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 22377% more annual revenue ($21.95B vs $97.64M). ADP leads profitability with a 20.1% profit margin vs -11.6%. ADP appears more attractively valued with a PEG of 2.50. 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

DJCO

Hold

47

out of 100

Grade: D+

Growth: 8.7Profit: 4.0Value: 3.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$286.08

$120.90 premium

UndervaluedFair: $165.18Overvalued
DJCOSignificantly Overvalued (-74.1%)

Margin of Safety

-74.1%

Fair Value

$320.57

Current Price

$628.67

$308.10 premium

UndervaluedFair: $320.57Overvalued

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

DJCO6 strengths · Avg: 9.0/10
EPS GrowthGrowth
57.6%10/10

Earnings expanding 57.6% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.6510/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Revenue GrowthGrowth
15.3%8/10

15.3% revenue growth

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
18.9x4/10

Trading at 18.9x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

DJCO4 concerns · Avg: 2.0/10
Market CapQuality
$787.15M3/10

Smaller company, higher risk/reward

PEG RatioValuation
4.322/10

Expensive relative to growth rate

Return on EquityProfitability
-3.4%2/10

ROE of -3.4% — below average capital efficiency

Profit MarginProfitability
-11.6%1/10

Currently unprofitable

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 : DJCO

The strongest argument for DJCO centers on EPS Growth, Debt/Equity, Altman Z-Score. Revenue growth of 15.3% demonstrates continued momentum.

Bear Case : ADP

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

Bear Case : DJCO

The primary concerns for DJCO are Market Cap, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

ADP profiles as a mature stock while DJCO is a growth play — different risk/reward profiles.

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

DJCO is growing revenue faster at 15.3% — 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 47/100), backed by strong 20.1% margins. 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.

Daily Journal Corp

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Daily Journal Corporation publishes newspapers and websites covering California, Arizona, and Utah. The company is headquartered in Los Angeles, California.

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