Automatic Data Processing Inc (ADP)vsSonos Inc (SONO)
ADP
Automatic Data Processing Inc
$215.06
-1.45%
TECHNOLOGY · Cap: $84.90B
SONO
Sonos Inc
$14.67
+1.31%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 1375% more annual revenue ($21.21B vs $1.44B). ADP leads profitability with a 20.0% profit margin vs -1.2%. ADP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy64
out of 100
Grade: C+
SONO
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-11.0%
Fair Value
$190.97
Current Price
$215.06
$24.09 premium
Margin of Safety
+42.1%
Fair Value
$28.49
Current Price
$14.67
$13.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 74 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 26.3%
Generating 1.1B in free cash flow
Earnings expanding 87.5% YoY
Areas to Watch
Trading at 13.6x book value
Distress zone — elevated risk
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Currently unprofitable
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 20.0% and operating margin at 26.3%.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : ADP
The primary concerns for ADP are Price/Book, Altman Z-Score, PEG Ratio.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
ADP profiles as a mature stock while SONO is a turnaround play — different risk/reward profiles.
SONO carries more volatility with a beta of 2.00 — 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 (64/100 vs 42/100), backed by strong 20.0% margins. SONO offers better value entry with a 42.1% margin of safety. Both earn "Buy" and "Hold" 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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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