Automatic Data Processing Inc (ADP)vsFair Isaac Corporation (FICO)
ADP
Automatic Data Processing Inc
$285.37
-2.64%
TECHNOLOGY · Cap: $113.74B
FICO
Fair Isaac Corporation
$698.18
+0.93%
TECHNOLOGY · Cap: $16.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 817% more annual revenue ($21.95B vs $2.39B). FICO leads profitability with a 34.1% profit margin vs 20.1%. FICO appears more attractively valued with a PEG of 0.70. FICO earns a higher WallStSmart Score of 80/100 (B+).
ADP
Buy62
out of 100
Grade: C+
FICO
Strong Buy80
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$285.37
$120.19 premium
Intrinsic value data unavailable for FICO.
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
Every $100 of equity generates 36 in profit
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 53.8%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.8x book value
Weak financial health signals
No major concerns identified
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 : FICO
The strongest argument for FICO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 34.1% and operating margin at 53.8%. Revenue growth of 25.7% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : FICO
No major red flags identified for FICO, but monitor valuation.
Key Dynamics to Monitor
ADP profiles as a mature stock while FICO is a growth play — different risk/reward profiles.
FICO carries more volatility with a beta of 1.34 — expect wider price swings.
FICO is growing revenue faster at 25.7% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
FICO scores higher overall (80/100 vs 62/100), backed by strong 34.1% margins and 25.7% revenue growth. 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.
Fair Isaac Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Fair Isaac Corporation develops data management, software and analytics products and services that enable companies to automate, improve and connect decisions in North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. The company is headquartered in San Jose, California.
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