Automatic Data Processing Inc (ADP)vsPubmatic Inc (PUBM)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
PUBM
Pubmatic Inc
$13.10
+0.54%
TECHNOLOGY · Cap: $608.41M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 7569% more annual revenue ($21.60B vs $281.67M). ADP leads profitability with a 20.1% profit margin vs -6.2%. ADP appears more attractively valued with a PEG of 2.30. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
PUBM
Avoid28
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$263.87
$105.05 premium
Margin of Safety
+61.3%
Fair Value
$16.98
Current Price
$13.10
$3.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Strong operational efficiency at 30.2%
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Generating 2.0B in free cash flow
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -7.0% — below average capital efficiency
Revenue declined 2.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : PUBM
The strongest argument for PUBM centers on Debt/Equity, Price/Book.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : PUBM
The primary concerns for PUBM are Market Cap, PEG Ratio, Return on Equity.
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 1.51 — 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 28/100), backed by strong 20.1% margins. PUBM offers better value entry with a 61.3% margin of safety. Both earn "Strong 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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