Automatic Data Processing Inc (ADP)vsHubSpot Inc (HUBS)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
HUBS
HubSpot Inc
$251.12
+5.49%
TECHNOLOGY · Cap: $11.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 555% more annual revenue ($21.60B vs $3.30B). ADP leads profitability with a 20.1% profit margin vs 3.0%. HUBS appears more attractively valued with a PEG of 0.36. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
HUBS
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
+59.0%
Fair Value
$510.89
Current Price
$251.12
$259.77 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 968.0% YoY
Conservative balance sheet, low leverage
Revenue surging 23.4% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
Distress zone — elevated risk
ROE of 5.0% — below average capital efficiency
3.0% margin — thin
Operating margin of 3.3%
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 : HUBS
The strongest argument for HUBS centers on PEG Ratio, EPS Growth, Debt/Equity. Revenue growth of 23.4% demonstrates continued momentum. PEG of 0.36 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 : HUBS
The primary concerns for HUBS are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 117.4x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
ADP profiles as a mature stock while HUBS is a growth play — different risk/reward profiles.
HUBS carries more volatility with a beta of 1.22 — expect wider price swings.
HUBS is growing revenue faster at 23.4% — 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. HUBS offers better value entry with a 59.0% 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.
HubSpot Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
HubSpot, Inc. provides a cloud-based customer relationship management (CRM) platform for companies in the Americas, Europe, and Asia Pacific. The company is headquartered in Cambridge, Massachusetts.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?