Automatic Data Processing Inc (ADP)vsDigimarc Corporation (DMRC)
ADP
Automatic Data Processing Inc
$273.37
+3.48%
TECHNOLOGY · Cap: $97.18B
DMRC
Digimarc Corporation
$6.37
-1.85%
TECHNOLOGY · Cap: $133.32M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 67141% more annual revenue ($21.60B vs $32.12M). ADP leads profitability with a 20.1% profit margin vs -85.8%. DMRC appears more attractively valued with a PEG of 0.52. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
DMRC
Avoid30
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$273.37
$114.55 premium
Margin of Safety
+76.8%
Fair Value
$22.41
Current Price
$6.37
$16.04 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Strong operational efficiency at 30.2%
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Generating 2.0B in free cash flow
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Trading at 17.2x book value
Distress zone — elevated risk
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, Operating Margin, Market Cap. Profitability is solid with margins at 20.1% and operating margin at 30.2%.
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, Price/Book, Altman Z-Score.
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 2.26 — expect wider price swings.
ADP is growing revenue faster at 7.0% — sustainability is the question.
ADP generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (66/100 vs 30/100), backed by strong 20.1% margins. DMRC offers better value entry with a 76.8% margin of safety. Both earn "Strong 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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