Automatic Data Processing Inc (ADP)vsMicrosoft Corporation (MSFT)
ADP
Automatic Data Processing Inc
$303.35
-1.23%
TECHNOLOGY · Cap: $116.00B
MSFT
Microsoft Corporation
$530.61
-0.99%
TECHNOLOGY · Cap: $3.88T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 1456% more annual revenue ($346.44B vs $22.26B). MSFT leads profitability with a 41.2% profit margin vs 20.3%. MSFT appears more attractively valued with a PEG of 1.70. MSFT earns a higher WallStSmart Score of 72/100 (B).
ADP
Buy64
out of 100
Grade: C+
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$168.19
Current Price
$303.35
$135.16 premium
Intrinsic value data unavailable for MSFT.
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 26.7%
Generating 1.4B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Keeps 41 of every $100 in revenue as profit
Strong operational efficiency at 49.8%
Generating 19.6B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Weak financial health signals
Expensive relative to growth rate
Trading at 23.6x book value
Expensive relative to growth rate
Moderate valuation
Trading at 8.4x book value
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 20.3% and operating margin at 26.7%.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 41.2% and operating margin at 49.8%. Revenue growth of 18.8% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
ADP profiles as a mature stock while MSFT is a growth play — different risk/reward profiles.
MSFT carries more volatility with a beta of 1.10 — expect wider price swings.
MSFT is growing revenue faster at 18.8% — sustainability is the question.
MSFT generates stronger free cash flow (19.6B), providing more financial flexibility.
Bottom Line
MSFT scores higher overall (72/100 vs 64/100), backed by strong 41.2% margins and 18.8% 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.
Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
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