WallStSmart

Automatic Data Processing Inc (ADP)vsAMTD Digital Inc. (HKD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 16026% more annual revenue ($21.95B vs $136.10M). HKD leads profitability with a 40.2% profit margin vs 20.1%. HKD trades at a lower P/E of 9.6x. HKD earns a higher WallStSmart Score of 70/100 (B).

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

HKD

Strong Buy

70

out of 100

Grade: B

Growth: 10.0Profit: 9.0Value: 8.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$286.08

$120.90 premium

UndervaluedFair: $165.18Overvalued
HKDUndervalued (+73.7%)

Margin of Safety

+73.7%

Fair Value

$5.71

Current Price

$1.73

$3.98 discount

UndervaluedFair: $5.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$113.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

HKD6 strengths · Avg: 10.0/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
40.2%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
60.5%10/10

Strong operational efficiency at 60.5%

Revenue GrowthGrowth
340.9%10/10

Revenue surging 340.9% year-over-year

EPS GrowthGrowth
81.0%10/10

Earnings expanding 81.0% YoY

Areas to Watch

ADP4 concerns · Avg: 3.8/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
18.9x4/10

Trading at 18.9x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

HKD3 concerns · Avg: 3.0/10
Market CapQuality
$543.70M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 20.1% and operating margin at 23.5%.

Bull Case : HKD

The strongest argument for HKD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 40.2% and operating margin at 60.5%. Revenue growth of 340.9% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : HKD

The primary concerns for HKD are Market Cap, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

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

HKD carries more volatility with a beta of 1.96 — expect wider price swings.

HKD is growing revenue faster at 340.9% — sustainability is the question.

ADP generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

HKD scores higher overall (70/100 vs 62/100), backed by strong 40.2% margins and 340.9% revenue growth. 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.

AMTD Digital Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

AMTD Digital Inc. designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions.

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