Automatic Data Processing Inc (ADP)vsPubmatic Inc (PUBM)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
PUBM
Pubmatic Inc
$16.98
-0.41%
TECHNOLOGY · Cap: $785.28M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 7490% more annual revenue ($21.95B vs $289.17M). ADP leads profitability with a 20.1% profit margin vs -4.7%. ADP appears more attractively valued with a PEG of 2.50. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
PUBM
Avoid33
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Margin of Safety
+62.7%
Fair Value
$17.63
Current Price
$16.98
$0.65 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
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Smaller company, higher risk/reward
Operating margin of 0.7%
Expensive relative to growth rate
ROE of -5.7% — below average capital efficiency
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 : PUBM
The strongest argument for PUBM centers on Debt/Equity. Revenue growth of 10.5% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : PUBM
The primary concerns for PUBM are Market Cap, Operating Margin, PEG Ratio.
Key Dynamics to Monitor
ADP profiles as a mature stock while PUBM is a turnaround play — different risk/reward profiles.
PUBM carries more volatility with a beta of 1.56 — expect wider price swings.
PUBM is growing revenue faster at 10.5% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (62/100 vs 33/100), backed by strong 20.1% margins. PUBM offers better value entry with a 62.7% margin of safety. Both earn "Buy" and "Avoid" 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.
Pubmatic Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
PubMatic, Inc. provides a cloud infrastructure platform that enables real-time programmatic ad transactions for Internet content creators and advertisers around the world. The company is headquartered in Redwood City, California.
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