WallStSmart

Automatic Data Processing Inc (ADP)vsElastic NV (ESTC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 1135% more annual revenue ($22.26B vs $1.80B). ESTC leads profitability with a 20.8% profit margin vs 20.3%. ADP appears more attractively valued with a PEG of 2.70. ADP earns a higher WallStSmart Score of 64/100 (C+).

ADP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 3.3Quality: 3.5
Piotroski: 2/9Altman Z: 0.53

ESTC

Buy

52

out of 100

Grade: C-

Growth: 6.7Profit: 3.5Value: 6.0Quality: 5.0
Piotroski: 3/9Altman Z: 0.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-79.9%)

Margin of Safety

-79.9%

Fair Value

$168.59

Current Price

$303.35

$134.76 premium

UndervaluedFair: $168.59Overvalued
ESTCUndervalued (+63.1%)

Margin of Safety

+63.1%

Fair Value

$167.76

Current Price

$86.08

$81.68 discount

UndervaluedFair: $167.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP4 strengths · Avg: 9.0/10
Return on EquityProfitability
88.9%10/10

Every $100 of equity generates 89 in profit

Market CapQuality
$116.00B9/10

Large-cap with strong market position

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

ESTC2 strengths · Avg: 8.5/10
Profit MarginProfitability
20.8%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

Areas to Watch

ADP4 concerns · Avg: 3.0/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.702/10

Expensive relative to growth rate

ESTC4 concerns · Avg: 3.3/10
P/E RatioValuation
26.9x4/10

Moderate valuation

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.172/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : ESTC

The strongest argument for ESTC centers on Profit Margin, Revenue Growth. Profitability is solid with margins at 20.8% and operating margin at -0.6%. Revenue growth of 15.1% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are P/E Ratio, Debt/Equity, Piotroski F-Score.

Bear Case : ESTC

The primary concerns for ESTC are P/E Ratio, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

ADP profiles as a mature stock while ESTC is a growth play — different risk/reward profiles.

ESTC carries more volatility with a beta of 1.04 — expect wider price swings.

ESTC is growing revenue faster at 15.1% — sustainability is the question.

ADP generates stronger free cash flow (598M), providing more financial flexibility.

Bottom Line

ADP scores higher overall (64/100 vs 52/100), backed by strong 20.3% margins. ESTC offers better value entry with a 63.1% margin of safety. Both earn "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.

Elastic NV

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Elastic NV, a search company, offers technology that enables users to search through structured and unstructured data for a variety of consumer and business applications. The company is headquartered in Mountain View, California.

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