Automatic Data Processing Inc (ADP)vsQ2 Holdings (QTWO)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
QTWO
Q2 Holdings
$60.42
+1.99%
TECHNOLOGY · Cap: $3.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 2529% more annual revenue ($21.60B vs $821.58M). ADP leads profitability with a 20.1% profit margin vs 9.0%. 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-
QTWO
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$263.87
$105.05 premium
Intrinsic value data unavailable for QTWO.
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
Earnings expanding 471.4% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : QTWO
The strongest argument for QTWO centers on EPS Growth. Revenue growth of 14.1% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : QTWO
The primary concerns for QTWO are PEG Ratio, P/E Ratio, Altman Z-Score. A P/E of 49.2x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while QTWO is a value play — different risk/reward profiles.
QTWO carries more volatility with a beta of 1.33 — expect wider price swings.
QTWO is growing revenue faster at 14.1% — 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 51/100), backed by strong 20.1% margins. 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.
Q2 Holdings
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Q2 Holdings, Inc. provides cloud-based digital banking solutions to Community and Regional Financial Institutions (RCFIs) in the United States. The company is headquartered in Austin, Texas.
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