Automatic Data Processing Inc (ADP)vsDescartes Systems Group Inc (DSGX)
ADP
Automatic Data Processing Inc
$303.35
-1.23%
TECHNOLOGY · Cap: $116.00B
DSGX
Descartes Systems Group Inc
$93.99
-0.88%
TECHNOLOGY · Cap: $7.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 2772% more annual revenue ($22.26B vs $775.17M). DSGX leads profitability with a 24.2% profit margin vs 20.3%. DSGX appears more attractively valued with a PEG of 1.51. DSGX earns a higher WallStSmart Score of 67/100 (B-).
ADP
Buy64
out of 100
Grade: C+
DSGX
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$168.19
Current Price
$303.35
$135.16 premium
Margin of Safety
-2.6%
Fair Value
$64.12
Current Price
$93.99
$29.87 premium
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 26.7%
Generating 1.4B in free cash flow
Strong operational efficiency at 33.2%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 24 of every $100 in revenue as profit
Earnings expanding 32.6% YoY
Areas to Watch
Moderate valuation
Weak financial health signals
Expensive relative to growth rate
Trading at 23.6x book value
Expensive relative to growth rate
Weak financial health signals
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 20.3% and operating margin at 26.7%.
Bull Case : DSGX
The strongest argument for DSGX centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 24.2% and operating margin at 33.2%. Revenue growth of 11.8% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : DSGX
The primary concerns for DSGX are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 43.0x leaves little room for execution misses.
Key Dynamics to Monitor
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
DSGX is growing revenue faster at 11.8% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DSGX scores higher overall (67/100 vs 64/100), backed by strong 24.2% margins and 11.8% revenue growth. Both earn "Strong 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.
Descartes Systems Group Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focus on improving productivity, performance and security for intensive logistics companies globally. The company is headquartered in Waterloo, Canada.
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