Automatic Data Processing Inc (ADP)vsSPS Commerce Inc (SPSC)
ADP
Automatic Data Processing Inc
$293.84
+2.71%
TECHNOLOGY · Cap: $113.74B
SPSC
SPS Commerce Inc
$82.99
-3.25%
TECHNOLOGY · Cap: $3.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 2741% more annual revenue ($21.95B vs $772.49M). ADP leads profitability with a 20.1% profit margin vs 10.1%. ADP appears more attractively valued with a PEG of 2.50. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
SPSC
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$293.84
$128.66 premium
Margin of Safety
+70.8%
Fair Value
$235.04
Current Price
$82.99
$152.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 73 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 23.5%
Generating 1.4B in free cash flow
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 19.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 63.9%
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 23.5%.
Bull Case : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : SPSC
The primary concerns for SPSC are PEG Ratio, P/E Ratio, EPS Growth. A P/E of 41.8x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while SPSC is a value play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — 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 46/100), backed by strong 20.1% margins. SPSC offers better value entry with a 70.8% 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.
SPS Commerce Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.
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