Automatic Data Processing Inc (ADP)vsPDF Solutions Inc (PDFS)
ADP
Automatic Data Processing Inc
$307.92
+0.51%
TECHNOLOGY · Cap: $116.00B
PDFS
PDF Solutions Inc
$41.79
-2.75%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 8721% more annual revenue ($22.26B vs $252.40M). ADP leads profitability with a 20.3% profit margin vs 6.3%. ADP appears more attractively valued with a PEG of 2.70. ADP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy64
out of 100
Grade: C+
PDFS
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-79.9%
Fair Value
$168.59
Current Price
$307.92
$139.33 premium
Margin of Safety
-34.4%
Fair Value
$30.25
Current Price
$41.79
$11.54 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 89 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 26.7%
Earnings expanding 433.3% YoY
Conservative balance sheet, low leverage
19.6% revenue growth
Areas to Watch
Moderate valuation
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 2.6% — below average capital efficiency
6.3% margin — thin
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 : PDFS
The strongest argument for PDFS centers on EPS Growth, Debt/Equity, Revenue Growth. Revenue growth of 19.6% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are P/E Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : PDFS
The primary concerns for PDFS are Altman Z-Score, Market Cap, Return on Equity. A P/E of 110.0x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while PDFS is a growth play — different risk/reward profiles.
PDFS carries more volatility with a beta of 1.78 — expect wider price swings.
PDFS is growing revenue faster at 19.6% — sustainability is the question.
ADP generates stronger free cash flow (598M), providing more financial flexibility.
Bottom Line
ADP scores higher overall (64/100 vs 46/100), backed by strong 20.3% margins. Both earn "Buy" and "Hold" 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.
PDF Solutions Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement equipment, proven methodologies, and professional services in the United States, China, Taiwan, and internationally. The company is headquartered in Santa Clara, California.
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