WallStSmart

Adobe Inc. (ADBE)vsAutomatic Data Processing Inc (ADP)

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Smart Verdict

WallStSmart Research — data-driven comparison

Adobe Inc. generates 18% more annual revenue ($25.97B vs $21.95B). ADBE leads profitability with a 28.1% profit margin vs 20.1%. ADBE appears more attractively valued with a PEG of 0.58. ADBE earns a higher WallStSmart Score of 76/100 (B+).

ADBE

Strong Buy

76

out of 100

Grade: B+

Growth: 6.7Profit: 10.0Value: 8.7Quality: 6.0
Piotroski: 5/9Altman Z: 4.35

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADBEUndervalued (+37.5%)

Margin of Safety

+37.5%

Fair Value

$421.78

Current Price

$248.12

$173.66 discount

UndervaluedFair: $421.78Overvalued
ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$286.08

$120.90 premium

UndervaluedFair: $165.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADBE6 strengths · Avg: 9.3/10
Return on EquityProfitability
61.9%10/10

Every $100 of equity generates 62 in profit

Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Market CapQuality
$95.43B9/10

Large-cap with strong market position

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

PEG RatioValuation
0.588/10

Growing faster than its price suggests

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$113.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

Areas to Watch

ADBE1 concerns · Avg: 4.0/10
Price/BookValuation
8.2x4/10

Trading at 8.2x book value

ADP4 concerns · Avg: 3.8/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
18.9x4/10

Trading at 18.9x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ADBE

The strongest argument for ADBE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.1% and operating margin at 34.8%. Revenue growth of 12.9% demonstrates continued momentum.

Bull 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%.

Bear Case : ADBE

The primary concerns for ADBE are Price/Book.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

ADBE carries more volatility with a beta of 1.42 — expect wider price swings.

ADBE is growing revenue faster at 12.9% — sustainability is the question.

ADBE generates stronger free cash flow (2.4B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ADBE scores higher overall (76/100 vs 62/100), backed by strong 28.1% margins and 12.9% revenue growth. 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.

Adobe Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

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Automatic Data Processing Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.

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