WallStSmart

Automatic Data Processing Inc (ADP)vsDigimarc Corporation (DMRC)

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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

Buy

62

out of 100

Grade: C+

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

DMRC

Avoid

30

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 7.7Quality: 5.0
Piotroski: 2/9Altman Z: -9.32
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
DMRCUndervalued (+75.6%)

Margin of Safety

+75.6%

Fair Value

$21.25

Current Price

$8.63

$12.62 discount

UndervaluedFair: $21.25Overvalued

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

DMRC2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

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

DMRC4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$174.30M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-80.9%2/10

ROE of -80.9% — below average capital efficiency

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 : 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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