WallStSmart

Automatic Data Processing Inc (ADP)vsFreshworks Inc (FRSH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 2363% more annual revenue ($22.26B vs $903.87M). FRSH leads profitability with a 20.5% profit margin vs 20.3%. FRSH appears more attractively valued with a PEG of 0.63. 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

FRSH

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 8.0Quality: 6.0
Piotroski: 5/9Altman 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
FRSHUndervalued (+61.6%)

Margin of Safety

+61.6%

Fair Value

$18.99

Current Price

$12.11

$6.88 discount

UndervaluedFair: $18.99Overvalued

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%

FRSH4 strengths · Avg: 8.8/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.0%8/10

16.0% 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

FRSH2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
-0.932/10

Distress zone — elevated risk

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 : FRSH

The strongest argument for FRSH centers on Debt/Equity, Profit Margin, PEG Ratio. Profitability is solid with margins at 20.5% and operating margin at 5.5%. Revenue growth of 16.0% demonstrates continued momentum.

Bear Case : ADP

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

Bear Case : FRSH

The primary concerns for FRSH are EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

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

FRSH carries more volatility with a beta of 0.90 — expect wider price swings.

FRSH is growing revenue faster at 16.0% — sustainability is the question.

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

Bottom Line

ADP scores higher overall (64/100 vs 60/100), backed by strong 20.3% margins. FRSH offers better value entry with a 61.6% 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.

Freshworks Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Papa Murphy's Holdings, Inc. owns, operates and franchises Take? The company is headquartered in Vancouver, Washington.

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