WallStSmart

Automatic Data Processing Inc (ADP)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 73% more annual revenue ($36.80B vs $21.21B). ADP leads profitability with a 20.0% profit margin vs 19.5%. SAP appears more attractively valued with a PEG of 0.79. ADP earns a higher WallStSmart Score of 66/100 (B-).

ADP

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 6.7Quality: 5.8
Piotroski: 6/9Altman Z: 1.53

SAP

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPUndervalued (+23.0%)

Margin of Safety

+23.0%

Fair Value

$262.33

Current Price

$202.11

$60.22 discount

UndervaluedFair: $262.33Overvalued
SAPSignificantly Overvalued (-88.8%)

Margin of Safety

-88.8%

Fair Value

$104.04

Current Price

$168.95

$64.91 premium

UndervaluedFair: $104.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.8%10/10

Every $100 of equity generates 74 in profit

Market CapQuality
$81.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.0%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

Free Cash FlowQuality
$1.11B8/10

Generating 1.1B in free cash flow

SAP6 strengths · Avg: 8.8/10
Market CapQuality
$217.55B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$1.09B8/10

Generating 1.1B in free cash flow

Areas to Watch

ADP3 concerns · Avg: 3.3/10
Price/BookValuation
12.7x4/10

Trading at 12.7x book value

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

PEG RatioValuation
2.672/10

Expensive relative to growth rate

SAP2 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

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 20.0% and operating margin at 26.3%.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : ADP

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

Bear Case : SAP

The primary concerns for SAP are P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

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

ADP carries more volatility with a beta of 0.85 — expect wider price swings.

ADP is growing revenue faster at 6.2% — sustainability is the question.

ADP generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

ADP scores higher overall (66/100 vs 58/100), backed by strong 20.0% 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.

SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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