Automatic Data Processing Inc (ADP)vsClearwater Analytics Holdings Inc (CWAN)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
CWAN
Clearwater Analytics Holdings Inc
$24.56
0.00%
TECHNOLOGY · Cap: $7.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 2558% more annual revenue ($21.95B vs $825.73M). ADP leads profitability with a 20.1% profit margin vs -5.8%. CWAN appears more attractively valued with a PEG of 1.78. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
CWAN
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Margin of Safety
-17.6%
Fair Value
$20.06
Current Price
$24.56
$4.50 premium
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 23.5%
Generating 1.4B in free cash flow
Revenue surging 74.4% year-over-year
Earnings expanding 202.8% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
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 20.1% and operating margin at 23.5%.
Bull Case : CWAN
The strongest argument for CWAN centers on Revenue Growth, EPS Growth. Revenue growth of 74.4% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : CWAN
The primary concerns for CWAN are PEG Ratio, Altman Z-Score, Operating Margin.
Key Dynamics to Monitor
ADP profiles as a mature stock while CWAN is a hypergrowth play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
CWAN is growing revenue faster at 74.4% — 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 47/100), backed by strong 20.1% margins. 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.
Clearwater Analytics Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Clearwater Analytics Holdings Inc. (CWAN) is a premier provider of cutting-edge cloud-based investment accounting and analytics solutions tailored for investment firms, insurance companies, and global corporations. The company's sophisticated platform bolsters portfolio management and reporting, allowing clients to make strategic investment decisions while ensuring operational efficiency and adherence to regulatory requirements. With its strategic positioning in the dynamic financial technology sector, Clearwater is adept at harnessing the increasing need for integrated investment solutions, thereby fostering continued growth and innovation within the financial services landscape.
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