Automatic Data Processing Inc (ADP)vsShopify Inc (SHOP)
ADP
Automatic Data Processing Inc
$271.32
-0.80%
TECHNOLOGY · Cap: $107.44B
SHOP
Shopify Inc
$151.57
+2.80%
TECHNOLOGY · Cap: $158.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 77% more annual revenue ($21.95B vs $12.37B). ADP leads profitability with a 20.1% profit margin vs 10.8%. ADP appears more attractively valued with a PEG of 2.49. ADP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy64
out of 100
Grade: C+
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.6%
Fair Value
$162.16
Current Price
$271.32
$109.16 premium
Margin of Safety
+17.7%
Fair Value
$142.03
Current Price
$151.57
$9.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 23.1%
Generating 2.0B in free cash flow
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Trading at 17.9x book value
Distress zone — elevated risk
Trading at 15.8x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 23.1%.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 120.0x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.58 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
ADP generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (64/100 vs 50/100), backed by strong 20.1% margins. SHOP offers better value entry with a 17.7% 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?