Automatic Data Processing Inc (ADP)vsOpen Text Corp (OTEX)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
OTEX
Open Text Corp
$27.13
-0.33%
TECHNOLOGY · Cap: $6.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 318% more annual revenue ($21.95B vs $5.25B). ADP leads profitability with a 20.1% profit margin vs 12.3%. OTEX appears more attractively valued with a PEG of 1.02. OTEX earns a higher WallStSmart Score of 74/100 (B).
ADP
Buy62
out of 100
Grade: C+
OTEX
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$285.37
$120.19 premium
Margin of Safety
+81.1%
Fair Value
$128.28
Current Price
$27.13
$101.15 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
Attractively priced relative to earnings
Earnings expanding 476.1% YoY
Reasonable price relative to book value
Strong operational efficiency at 24.1%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
2.9% revenue growth
Elevated debt levels
Distress zone — elevated risk
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 : OTEX
The strongest argument for OTEX centers on P/E Ratio, EPS Growth, Price/Book. PEG of 1.02 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 : OTEX
The primary concerns for OTEX are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
ADP profiles as a mature stock while OTEX is a value play — different risk/reward profiles.
OTEX carries more volatility with a beta of 1.02 — expect wider price swings.
ADP is growing revenue faster at 6.8% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
OTEX scores higher overall (74/100 vs 62/100). 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.
Open Text Corp
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Open Text Corporation offers a suite of software products and services. The company is headquartered in Waterloo, Canada.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
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