WallStSmart

Automatic Data Processing Inc (ADP)vsSoundHound AI Inc (SOUN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 10856% more annual revenue ($22.26B vs $203.20M). ADP leads profitability with a 20.3% profit margin vs -67.4%. ADP earns a higher WallStSmart Score of 64/100 (C+).

ADP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 3.3Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

SOUN

Avoid

28

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.3Quality: 7.0
Piotroski: 4/9Altman Z: -0.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-74.7%)

Margin of Safety

-74.7%

Fair Value

$168.19

Current Price

$293.84

$125.65 premium

UndervaluedFair: $168.19Overvalued
SOUNUndervalued (+7.3%)

Margin of Safety

+7.3%

Fair Value

$8.59

Current Price

$4.22

$4.37 discount

UndervaluedFair: $8.59Overvalued

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
$116.00B9/10

Large-cap with strong market position

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

SOUN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
45.0%10/10

Revenue surging 45.0% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Areas to Watch

ADP4 concerns · Avg: 2.8/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.702/10

Expensive relative to growth rate

Price/BookValuation
22.8x2/10

Trading at 22.8x book value

SOUN4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.97B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-36.7%2/10

ROE of -36.7% — below average capital efficiency

Free Cash FlowQuality
$-34.06M2/10

Negative free cash flow — burning cash

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 20.3% and operating margin at 26.7%.

Bull Case : SOUN

The strongest argument for SOUN centers on Revenue Growth, Debt/Equity. Revenue growth of 45.0% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : SOUN

The primary concerns for SOUN are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

ADP profiles as a mature stock while SOUN is a hypergrowth play — different risk/reward profiles.

SOUN carries more volatility with a beta of 2.86 — expect wider price swings.

SOUN is growing revenue faster at 45.0% — sustainability is the question.

ADP generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ADP scores higher overall (64/100 vs 28/100), backed by strong 20.3% margins. Both earn "Buy" and "Avoid" 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.

SoundHound AI Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SoundHound AI, Inc. develops an independent voice artificial intelligence (AI) platform that enables businesses in all industries to deliver high-quality conversational experiences to their customers. The company is headquartered in Santa Clara, California.

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