Automatic Data Processing Inc (ADP)vsDynatrace Holdings LLC (DT)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
DT
Dynatrace Holdings LLC
$62.81
-1.47%
TECHNOLOGY · Cap: $17.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 947% more annual revenue ($21.95B vs $2.10B). ADP leads profitability with a 20.1% profit margin vs 7.2%. DT appears more attractively valued with a PEG of 1.19. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
DT
Hold44
out of 100
Grade: D
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
+37.1%
Fair Value
$59.01
Current Price
$62.81
$3.80 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
16.2% revenue growth
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
Grey zone — moderate risk
ROE of 6.2% — below average capital efficiency
7.2% margin — thin
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 20.1% and operating margin at 23.5%.
Bull Case : DT
The strongest argument for DT centers on Debt/Equity, Revenue Growth. Revenue growth of 16.2% demonstrates continued momentum. PEG of 1.19 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 : DT
The primary concerns for DT are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 122.2x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while DT is a growth play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
DT is growing revenue faster at 16.2% — 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 44/100), backed by strong 20.1% margins. DT offers better value entry with a 37.1% margin of safety. 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.
Dynatrace Holdings LLC
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. The company is headquartered in Waltham, Massachusetts.
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