Automatic Data Processing Inc (ADP)vseGain Corporation (EGAN)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
EGAN
eGain Corporation
$5.93
+2.42%
TECHNOLOGY · Cap: $148.65M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 23982% more annual revenue ($21.95B vs $91.14M). ADP leads profitability with a 20.1% profit margin vs 9.7%. EGAN appears more attractively valued with a PEG of 0.99. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
EGAN
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Margin of Safety
-50.3%
Fair Value
$6.54
Current Price
$5.93
$0.61 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 23.5%
Generating 1.4B in free cash flow
Every $100 of equity generates 54 in profit
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Smaller company, higher risk/reward
Operating margin of 4.9%
Revenue declined 4.7%
Earnings declined 95.7%
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 : EGAN
The strongest argument for EGAN centers on Return on Equity, Debt/Equity, PEG Ratio. PEG of 0.99 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 : EGAN
The primary concerns for EGAN are Market Cap, Operating Margin, Revenue Growth.
Key Dynamics to Monitor
ADP profiles as a mature stock while EGAN is a value play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — 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 48/100), backed by strong 20.1% margins. 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.
eGain Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
eGain Corporation is a software-as-a-service provider of customer engagement solutions in the United States, the United Kingdom, India, and internationally. The company is headquartered in Sunnyvale, California.
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