WallStSmart

Automatic Data Processing Inc (ADP)vsAutodesk Inc (ADSK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 182% more annual revenue ($21.95B vs $7.79B). ADSK leads profitability with a 21.1% profit margin vs 20.1%. ADSK appears more attractively valued with a PEG of 0.85. ADSK earns a higher WallStSmart Score of 76/100 (B+).

ADP

Buy

62

out of 100

Grade: C+

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

ADSK

Strong Buy

76

out of 100

Grade: B+

Growth: 8.7Profit: 9.0Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$286.08

$120.90 premium

UndervaluedFair: $165.18Overvalued
ADSKSignificantly Overvalued (-16.4%)

Margin of Safety

-16.4%

Fair Value

$199.79

Current Price

$242.38

$42.59 premium

UndervaluedFair: $199.79Overvalued

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
$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

ADSK6 strengths · Avg: 9.0/10
Return on EquityProfitability
48.5%10/10

Every $100 of equity generates 49 in profit

EPS GrowthGrowth
59.6%10/10

Earnings expanding 59.6% YoY

Market CapQuality
$50.14B9/10

Large-cap with strong market position

Profit MarginProfitability
21.1%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.858/10

Growing faster than its price suggests

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Areas to Watch

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

ADSK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
1.012/10

Distress zone — elevated risk

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 20.1% and operating margin at 23.5%.

Bull Case : ADSK

The strongest argument for ADSK centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 21.1% and operating margin at 29.2%. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : ADP

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

Bear Case : ADSK

The primary concerns for ADSK are P/E Ratio, Price/Book, Debt/Equity.

Key Dynamics to Monitor

ADP profiles as a mature stock while ADSK is a growth play — different risk/reward profiles.

ADSK carries more volatility with a beta of 1.33 — expect wider price swings.

ADSK is growing revenue faster at 16.1% — sustainability is the question.

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

Bottom Line

ADSK scores higher overall (76/100 vs 62/100), backed by strong 21.1% margins and 16.1% 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.

Automatic Data Processing Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

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

Autodesk Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Autodesk, Inc. is an American multinational software corporation that makes software products and services for the architecture, engineering, construction, manufacturing, media, education, and entertainment industries. Autodesk is headquartered in San Rafael, California.

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