Automatic Data Processing Inc (ADP)vsDynatrace Holdings LLC (DT)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
DT
Dynatrace Holdings LLC
$43.88
-0.05%
TECHNOLOGY · Cap: $12.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 970% more annual revenue ($21.60B vs $2.02B). ADP leads profitability with a 20.1% profit margin vs 8.1%. DT appears more attractively valued with a PEG of 0.92. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
DT
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$263.87
$105.05 premium
Margin of Safety
+35.6%
Fair Value
$57.66
Current Price
$43.88
$13.78 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
Conservative balance sheet, low leverage
Growing faster than its price suggests
19.4% revenue growth
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
Grey zone — moderate risk
ROE of 6.2% — below average capital efficiency
Premium valuation, high expectations priced in
Earnings declined 52.6%
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 : DT
The strongest argument for DT centers on Debt/Equity, PEG Ratio, Revenue Growth. Revenue growth of 19.4% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : DT
The primary concerns for DT are Altman Z-Score, Return on Equity, P/E Ratio. A P/E of 82.2x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while DT is a growth play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
DT is growing revenue faster at 19.4% — sustainability is the question.
ADP generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (66/100 vs 51/100), backed by strong 20.1% margins. DT offers better value entry with a 35.6% margin of safety. 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.
Dynatrace Holdings LLC
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. The company is headquartered in Waltham, Massachusetts.
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