Automatic Data Processing Inc (ADP)vsSalesforce.com Inc (CRM)
ADP
Automatic Data Processing Inc
$303.35
-1.23%
TECHNOLOGY · Cap: $116.00B
CRM
Salesforce.com Inc
$222.41
-3.94%
TECHNOLOGY · Cap: $188.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 97% more annual revenue ($43.94B vs $22.26B). CRM leads profitability with a 22.0% profit margin vs 20.3%. CRM appears more attractively valued with a PEG of 0.82. CRM earns a higher WallStSmart Score of 75/100 (B+).
ADP
Buy64
out of 100
Grade: C+
CRM
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$168.19
Current Price
$303.35
$135.16 premium
Margin of Safety
+67.9%
Fair Value
$713.65
Current Price
$222.41
$491.24 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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 26.7%
Generating 1.4B in free cash flow
Earnings expanding 118.9% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 21.4%
Areas to Watch
Moderate valuation
Weak financial health signals
Expensive relative to growth rate
Trading at 23.6x book value
Distress zone — elevated risk
Elevated debt levels
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 : CRM
The strongest argument for CRM centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 22.0% and operating margin at 21.4%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : CRM
The primary concerns for CRM are Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
CRM carries more volatility with a beta of 1.26 — expect wider price swings.
CRM is growing revenue faster at 10.8% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CRM scores higher overall (75/100 vs 64/100), backed by strong 22.0% margins and 10.8% 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.
Salesforce.com Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Salesforce.com, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management (CRM) service and also provides a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.
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