Automatic Data Processing Inc (ADP)vsDigimarc Corporation (DMRC)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
DMRC
Digimarc Corporation
$8.63
+9.38%
TECHNOLOGY · Cap: $174.30M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 69572% more annual revenue ($21.95B vs $31.50M). ADP leads profitability with a 20.1% profit margin vs -99.8%. DMRC appears more attractively valued with a PEG of 0.52. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
DMRC
Avoid30
out of 100
Grade: F
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
+75.6%
Fair Value
$21.25
Current Price
$8.63
$12.62 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
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
0.0% earnings growth
Smaller company, higher risk/reward
Weak financial health signals
ROE of -80.9% — below average capital efficiency
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 : DMRC
The strongest argument for DMRC centers on Debt/Equity, PEG Ratio. PEG of 0.52 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 : DMRC
The primary concerns for DMRC are EPS Growth, Market Cap, Piotroski F-Score.
Key Dynamics to Monitor
ADP profiles as a mature stock while DMRC is a turnaround play — different risk/reward profiles.
DMRC carries more volatility with a beta of 2.43 — 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 30/100), backed by strong 20.1% margins. DMRC offers better value entry with a 75.6% margin of safety. Both earn "Buy" and "Avoid" 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.
Digimarc Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Digimarc Corporation offers automatic identification solutions to commercial and government customers in the United States and internationally. The company is headquartered in Beaverton, Oregon.
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