WallStSmart

Automatic Data Processing Inc (ADP)vsPerfect Corp. (PERF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 30294% more annual revenue ($21.60B vs $71.07M). ADP leads profitability with a 20.1% profit margin vs 8.1%. PERF appears more attractively valued with a PEG of 1.39. ADP earns a higher WallStSmart Score of 66/100 (B-).

ADP

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 4.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.53

PERF

Hold

46

out of 100

Grade: D+

Growth: 7.3Profit: 4.0Value: 6.7Quality: 6.5
Piotroski: 3/9Altman Z: 0.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-60.5%)

Margin of Safety

-60.5%

Fair Value

$158.82

Current Price

$263.87

$105.05 premium

UndervaluedFair: $158.82Overvalued
PERFUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$6.19

Current Price

$1.93

$4.26 discount

UndervaluedFair: $6.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 9.2/10
Return on EquityProfitability
68.4%10/10

Every $100 of equity generates 68 in profit

Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

Market CapQuality
$97.18B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

PERF3 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
550.0%10/10

Earnings expanding 550.0% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Areas to Watch

ADP3 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Price/BookValuation
16.6x4/10

Trading at 16.6x book value

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

PERF4 concerns · Avg: 3.5/10
P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$195.55M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.1%3/10

ROE of 3.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : ADP

The strongest argument for ADP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 20.1% and operating margin at 30.2%.

Bull Case : PERF

The strongest argument for PERF centers on Price/Book, EPS Growth, Debt/Equity. PEG of 1.39 suggests the stock is reasonably priced for its growth.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.

Bear Case : PERF

The primary concerns for PERF are P/E Ratio, Revenue Growth, Market Cap.

Key Dynamics to Monitor

ADP profiles as a mature stock while PERF is a value play — different risk/reward profiles.

ADP carries more volatility with a beta of 0.84 — expect wider price swings.

ADP is growing revenue faster at 7.0% — sustainability is the question.

ADP generates stronger free cash flow (2.0B), providing more financial flexibility.

Bottom Line

ADP scores higher overall (66/100 vs 46/100), backed by strong 20.1% margins. PERF offers better value entry with a 75.8% margin of safety. Both earn "Strong 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.

Perfect Corp.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Perfumania Holdings, Inc., is a specialty retailer and distributor of fragrances and related beauty products in the United States.

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