WallStSmart

Automatic Data Processing Inc (ADP)vsRingcentral Inc (RNG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 749% more annual revenue ($21.95B vs $2.58B). ADP leads profitability with a 20.1% profit margin vs 4.3%. RNG appears more attractively valued with a PEG of 0.39. ADP earns a higher WallStSmart Score of 62/100 (C+).

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

RNG

Buy

51

out of 100

Grade: C-

Growth: 7.3Profit: 4.5Value: 7.3Quality: 4.0
Piotroski: 6/9Altman Z: -0.17
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$286.08

$120.90 premium

UndervaluedFair: $165.18Overvalued
RNGUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$183.63

Current Price

$86.20

$97.43 discount

UndervaluedFair: $183.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$113.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

RNG2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

EPS GrowthGrowth
221.4%10/10

Earnings expanding 221.4% YoY

Areas to Watch

ADP4 concerns · Avg: 3.8/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
18.9x4/10

Trading at 18.9x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

RNG4 concerns · Avg: 2.3/10
Profit MarginProfitability
4.3%3/10

4.3% margin — thin

P/E RatioValuation
60.4x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-689.0%2/10

ROE of -689.0% — below average capital efficiency

Altman Z-ScoreHealth
-0.172/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : RNG

The strongest argument for RNG centers on PEG Ratio, EPS Growth. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : RNG

The primary concerns for RNG are Profit Margin, P/E Ratio, Return on Equity. A P/E of 60.4x leaves little room for execution misses. Debt-to-equity of 5.52 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

RNG carries more volatility with a beta of 1.11 — expect wider price swings.

ADP is growing revenue faster at 6.8% — 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 51/100), backed by strong 20.1% margins. RNG offers better value entry with a 84.7% margin of safety. Both earn "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.

Ringcentral Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

RingCentral, Inc. offers software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company is headquartered in Belmont, California.

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