WallStSmart

Automatic Data Processing Inc (ADP)vsDuolingo Inc (DUOL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 1783% more annual revenue ($22.26B vs $1.18B). ADP leads profitability with a 20.3% profit margin vs 12.3%. ADP trades at a lower P/E of 26.1x. ADP earns a higher WallStSmart Score of 64/100 (C+).

ADP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 3.3Quality: 3.5
Piotroski: 2/9Altman Z: 0.53

DUOL

Hold

42

out of 100

Grade: D

Growth: 6.0Profit: 7.0Value: 5.7Quality: 7.5
Piotroski: 2/9Altman Z: 2.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-79.9%)

Margin of Safety

-79.9%

Fair Value

$168.59

Current Price

$307.92

$139.33 premium

UndervaluedFair: $168.59Overvalued
DUOLUndervalued (+57.3%)

Margin of Safety

+57.3%

Fair Value

$255.74

Current Price

$157.42

$98.32 discount

UndervaluedFair: $255.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP4 strengths · Avg: 9.0/10
Return on EquityProfitability
88.9%10/10

Every $100 of equity generates 89 in profit

Market CapQuality
$116.00B9/10

Large-cap with strong market position

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

DUOL2 strengths · Avg: 10.0/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Areas to Watch

ADP4 concerns · Avg: 3.0/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.702/10

Expensive relative to growth rate

DUOL3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
51.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-90.9%2/10

Earnings declined 90.9%

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 20.3% and operating margin at 26.7%.

Bull Case : DUOL

The strongest argument for DUOL centers on Return on Equity, Debt/Equity. Revenue growth of 13.7% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are P/E Ratio, Debt/Equity, Piotroski F-Score.

Bear Case : DUOL

The primary concerns for DUOL are Piotroski F-Score, P/E Ratio, EPS Growth. A P/E of 51.9x leaves little room for execution misses.

Key Dynamics to Monitor

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

DUOL carries more volatility with a beta of 1.02 — expect wider price swings.

DUOL is growing revenue faster at 13.7% — sustainability is the question.

ADP generates stronger free cash flow (598M), providing more financial flexibility.

Bottom Line

ADP scores higher overall (64/100 vs 42/100), backed by strong 20.3% margins. DUOL offers better value entry with a 57.3% 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.

Duolingo Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Duolingo Inc (DUOL) is a leading player in the edtech sector, renowned for its innovative language-learning platform that has successfully engaged over 500 million users globally through a unique freemium model augmented by gamification. Established in 2011, Duolingo utilizes advanced AI-driven personalized learning to enhance user experience and retention across more than 30 languages. The company's unwavering mission to provide accessible education aligns with the rapid expansion of the digital learning market, offering substantial growth potential for institutional investors seeking to tap into the future of educational technology.

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