Automatic Data Processing Inc (ADP)vs8x8 Inc Common Stock (EGHT)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
EGHT
8x8 Inc Common Stock
$1.97
+3.14%
TECHNOLOGY · Cap: $246.70M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 2836% more annual revenue ($21.60B vs $735.75M). ADP leads profitability with a 20.1% profit margin vs 0.2%. EGHT appears more attractively valued with a PEG of 0.48. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
EGHT
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$263.87
$105.05 premium
Margin of Safety
+89.1%
Fair Value
$24.76
Current Price
$1.97
$22.79 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
Growing faster than its price suggests
Earnings expanding 83.4% YoY
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
4.6% revenue growth
Smaller company, higher risk/reward
0.2% margin — thin
Operating margin of 1.8%
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 : EGHT
The strongest argument for EGHT centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.48 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 : EGHT
The primary concerns for EGHT are Revenue Growth, Market Cap, Profit Margin. A P/E of 174.0x leaves little room for execution misses. Debt-to-equity of 2.53 is elevated, increasing financial risk.
Key Dynamics to Monitor
ADP profiles as a mature stock while EGHT is a value play — different risk/reward profiles.
EGHT carries more volatility with a beta of 1.84 — 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 58/100), backed by strong 20.1% margins. EGHT offers better value entry with a 89.1% margin of safety. 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.
8x8 Inc Common Stock
TECHNOLOGY · SOFTWARE - APPLICATION · USA
8x8, Inc. provides enterprise-class voice, video, chat, contact center and contact center application programmable interface (API) software solutions for small and medium-sized businesses, medium-sized and large businesses, government agencies, and other organizations to world level. The company is headquartered in Campbell, California.
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