Automatic Data Processing Inc (ADP)vsSalesforce.com Inc (CRM)
ADP
Automatic Data Processing Inc
$214.60
+2.75%
TECHNOLOGY · Cap: $88.74B
CRM
Salesforce.com Inc
$150.12
+2.20%
TECHNOLOGY · Cap: $134.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 98% more annual revenue ($42.83B vs $21.60B). ADP leads profitability with a 20.1% profit margin vs 18.7%. CRM appears more attractively valued with a PEG of 0.79. CRM earns a higher WallStSmart Score of 76/100 (B+).
ADP
Strong Buy66
out of 100
Grade: B-
CRM
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.1%
Fair Value
$158.17
Current Price
$214.60
$56.43 premium
Margin of Safety
+78.9%
Fair Value
$720.27
Current Price
$150.12
$570.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 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
Earnings expanding 52.2% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Generating 6.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 13.5x book value
Distress zone — elevated risk
Distress zone — elevated risk
Elevated debt levels
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 EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 18.7% and operating margin at 21.8%. Revenue growth of 13.3% 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, Debt/Equity.
Key Dynamics to Monitor
CRM carries more volatility with a beta of 1.15 — expect wider price swings.
CRM is growing revenue faster at 13.3% — sustainability is the question.
CRM generates stronger free cash flow (6.6B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CRM scores higher overall (76/100 vs 66/100), backed by strong 18.7% margins and 13.3% revenue growth. 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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