WallStSmart

Automatic Data Processing Inc (ADP)vsBill Com Holdings Inc (BILL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 1228% more annual revenue ($21.95B vs $1.65B). ADP leads profitability with a 20.1% profit margin vs -0.7%. BILL appears more attractively valued with a PEG of 0.45. ADP earns a higher WallStSmart Score of 62/100 (C+).

ADP

Buy

62

out of 100

Grade: C+

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

BILL

Buy

50

out of 100

Grade: C-

Growth: 6.0Profit: 4.0Value: 8.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.49
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
BILLUndervalued (+79.7%)

Margin of Safety

+79.7%

Fair Value

$231.13

Current Price

$48.02

$183.11 discount

UndervaluedFair: $231.13Overvalued

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

BILL2 strengths · Avg: 10.0/10
PEG RatioValuation
0.4510/10

Growing faster than its price suggests

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

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

BILL4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.492/10

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 : BILL

The strongest argument for BILL centers on PEG Ratio, Price/Book. Revenue growth of 13.8% demonstrates continued momentum. PEG of 0.45 suggests the stock is reasonably priced for its growth.

Bear Case : ADP

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

Bear Case : BILL

The primary concerns for BILL are EPS Growth, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

ADP profiles as a mature stock while BILL is a turnaround play — different risk/reward profiles.

BILL carries more volatility with a beta of 1.14 — expect wider price swings.

BILL is growing revenue faster at 13.8% — 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 50/100), backed by strong 20.1% margins. BILL offers better value entry with a 79.7% 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.

Bill Com Holdings Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Bill.com Holdings, Inc. provides cloud-based software that digitizes and automates financial back-office operations for small and medium-sized businesses globally. The company is headquartered in Palo Alto, California.

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