Automatic Data Processing Inc (ADP)vsKarooooo Ltd (KARO)
ADP
Automatic Data Processing Inc
$293.84
+2.71%
TECHNOLOGY · Cap: $113.74B
KARO
Karooooo Ltd
$65.66
-1.56%
TECHNOLOGY · Cap: $1.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 281% more annual revenue ($21.95B vs $5.77B). ADP leads profitability with a 20.1% profit margin vs 17.8%. ADP trades at a lower P/E of 26.2x. KARO earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
KARO
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$293.84
$128.66 premium
Margin of Safety
+67.1%
Fair Value
$151.04
Current Price
$65.66
$85.38 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
Every $100 of equity generates 30 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 26.2%
Revenue surging 22.5% year-over-year
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 19.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 9.3x book value
Smaller company, higher risk/reward
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 : KARO
The strongest argument for KARO centers on Return on Equity, Altman Z-Score, Operating Margin. Profitability is solid with margins at 17.8% and operating margin at 26.2%. Revenue growth of 22.5% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : KARO
The primary concerns for KARO are P/E Ratio, Price/Book, Market Cap.
Key Dynamics to Monitor
ADP profiles as a mature stock while KARO is a growth play — different risk/reward profiles.
KARO carries more volatility with a beta of 0.89 — expect wider price swings.
KARO is growing revenue faster at 22.5% — sustainability is the question.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADP scores higher overall (62/100 vs 62/100), backed by strong 20.1% margins. KARO offers better value entry with a 67.1% 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.
Karooooo Ltd
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Karooooo Ltd. develops a vehicle fleet management software solution. The company is headquartered in Singapore.
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