Automatic Data Processing Inc (ADP)vsSalesforce.com Inc (CRM)
ADP
Automatic Data Processing Inc
$213.00
-0.51%
TECHNOLOGY · Cap: $85.14B
CRM
Salesforce.com Inc
$181.82
-2.43%
TECHNOLOGY · Cap: $152.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 92% more annual revenue ($41.52B vs $21.60B). ADP leads profitability with a 20.1% profit margin vs 18.0%. CRM appears more attractively valued with a PEG of 1.01. CRM earns a higher WallStSmart Score of 68/100 (B-).
ADP
Strong Buy68
out of 100
Grade: B-
CRM
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-9.7%
Fair Value
$195.13
Current Price
$213.00
$17.87 premium
Margin of Safety
+74.9%
Fair Value
$743.47
Current Price
$181.82
$561.65 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 71 in profit
Strong operational efficiency at 30.2%
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Generating 2.0B in free cash flow
Large-cap with strong market position
Conservative balance sheet, low leverage
Reasonable price relative to book value
Generating 5.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 13.4x book value
Distress zone — elevated risk
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ADP
The strongest argument for ADP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 20.1% and operating margin at 30.2%.
Bull Case : CRM
The strongest argument for CRM centers on Market Cap, Debt/Equity, Price/Book. Profitability is solid with margins at 18.0% and operating margin at 19.2%. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : CRM
The primary concerns for CRM are Altman Z-Score.
Key Dynamics to Monitor
CRM carries more volatility with a beta of 1.14 — expect wider price swings.
CRM is growing revenue faster at 12.1% — sustainability is the question.
CRM generates stronger free cash flow (5.3B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADP scores higher overall (68/100 vs 68/100), backed by strong 20.1% margins. CRM offers better value entry with a 74.9% margin of safety. Both earn "Strong Buy" and "Strong 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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