Adobe Inc. (ADBE)vsAutomatic Data Processing Inc (ADP)
ADBE
Adobe Inc.
$248.12
-0.66%
TECHNOLOGY · Cap: $95.43B
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
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 Buy76
out of 100
Grade: B+
ADP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.5%
Fair Value
$421.78
Current Price
$248.12
$173.66 discount
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 62 in profit
Strong operational efficiency at 34.8%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Growing faster than its price suggests
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
Areas to Watch
Trading at 8.2x book value
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Visit Website →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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