WallStSmart

Automatic Data Processing Inc (ADP)vsCommVault Systems Inc (CVLT)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 1705% more annual revenue ($21.95B vs $1.22B). ADP leads profitability with a 20.1% profit margin vs 5.6%. ADP appears more attractively valued with a PEG of 2.50. 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

CVLT

Hold

44

out of 100

Grade: D

Growth: 5.3Profit: 6.5Value: 4.0Quality: 4.0
Piotroski: 3/9Altman Z: 0.10
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
CVLTUndervalued (+22.4%)

Margin of Safety

+22.4%

Fair Value

$113.22

Current Price

$166.46

$53.24 discount

UndervaluedFair: $113.22Overvalued

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

CVLT1 strengths · Avg: 10.0/10
Return on EquityProfitability
942.9%10/10

Every $100 of equity generates 943 in profit

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

CVLT4 concerns · Avg: 2.5/10
Profit MarginProfitability
5.6%3/10

5.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.172/10

Expensive relative to growth rate

P/E RatioValuation
95.0x2/10

Premium valuation, high expectations priced in

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 : CVLT

The strongest argument for CVLT centers on Return on Equity. Revenue growth of 11.4% demonstrates continued momentum.

Bear Case : ADP

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

Bear Case : CVLT

The primary concerns for CVLT are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 95.0x leaves little room for execution misses. Debt-to-equity of 17.63 is elevated, increasing financial risk.

Key Dynamics to Monitor

ADP profiles as a mature stock while CVLT is a value play — different risk/reward profiles.

ADP carries more volatility with a beta of 0.84 — expect wider price swings.

CVLT is growing revenue faster at 11.4% — 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 44/100), backed by strong 20.1% margins. CVLT offers better value entry with a 22.4% margin of safety. Both earn "Buy" and "Hold" 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.

CommVault Systems Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States and internationally. The company is headquartered in Tinton Falls, New Jersey.

Want to dig deeper into these stocks?