Automatic Data Processing Inc (ADP)vsAlarm.com Holdings Inc (ALRM)
ADP
Automatic Data Processing Inc
$303.35
-1.23%
TECHNOLOGY · Cap: $116.00B
ALRM
Alarm.com Holdings Inc
$65.03
-2.98%
TECHNOLOGY · Cap: $3.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 1998% more annual revenue ($22.26B vs $1.06B). ADP leads profitability with a 20.3% profit margin vs 11.1%. ALRM appears more attractively valued with a PEG of 1.41. ADP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy64
out of 100
Grade: C+
ALRM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-79.9%
Fair Value
$168.59
Current Price
$303.35
$134.76 premium
Margin of Safety
+32.2%
Fair Value
$68.47
Current Price
$65.03
$3.44 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 89 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 26.7%
No standout strengths identified
Areas to Watch
Moderate valuation
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Grey zone — moderate risk
Earnings declined 23.4%
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 20.3% and operating margin at 26.7%.
Bull Case : ALRM
PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are P/E Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : ALRM
The primary concerns for ALRM are P/E Ratio, Altman Z-Score, EPS Growth.
Key Dynamics to Monitor
ADP profiles as a mature stock while ALRM is a value play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
ALRM is growing revenue faster at 9.2% — sustainability is the question.
ADP generates stronger free cash flow (598M), providing more financial flexibility.
Bottom Line
ADP scores higher overall (64/100 vs 54/100), backed by strong 20.3% margins. ALRM offers better value entry with a 32.2% margin of safety. Both earn "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.
Alarm.com Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Alarm.com Holdings, Inc. offers cloud-based solutions for smart residential and commercial properties in the United States and internationally. The company is headquartered in Tysons, Virginia.
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