Automatic Data Processing Inc (ADP)vsHubSpot Inc (HUBS)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
HUBS
HubSpot Inc
$248.97
-0.73%
TECHNOLOGY · Cap: $12.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 536% more annual revenue ($21.95B vs $3.45B). ADP leads profitability with a 20.1% profit margin vs 4.3%. HUBS appears more attractively valued with a PEG of 0.28. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
HUBS
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Margin of Safety
+67.0%
Fair Value
$633.89
Current Price
$248.97
$384.92 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 73 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 23.5%
Generating 1.4B in free cash flow
Growing faster than its price suggests
Earnings expanding 968.0% YoY
Conservative balance sheet, low leverage
19.8% revenue growth
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Distress zone — elevated risk
4.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : HUBS
The strongest argument for HUBS centers on PEG Ratio, EPS Growth, Debt/Equity. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.28 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : HUBS
The primary concerns for HUBS are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 85.3x leaves little room for execution misses. Thin 4.3% 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 1.24 — expect wider price swings.
HUBS is growing revenue faster at 19.8% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (62/100 vs 56/100), backed by strong 20.1% margins. HUBS offers better value entry with a 67.0% 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.
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.
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