WallStSmart

Automatic Data Processing Inc (ADP)vsZoomInfo Technologies Inc. (GTM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 1645% more annual revenue ($21.95B vs $1.26B). ADP leads profitability with a 20.1% profit margin vs -43.0%. 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

GTM

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: 0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$285.37

$120.19 premium

UndervaluedFair: $165.18Overvalued
GTMUndervalued (+77.7%)

Margin of Safety

+77.7%

Fair Value

$29.47

Current Price

$4.43

$25.04 discount

UndervaluedFair: $29.47Overvalued

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

GTM3 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.5%8/10

Strong operational efficiency at 20.5%

EPS GrowthGrowth
23.2%8/10

Earnings expanding 23.2% YoY

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
18.8x4/10

Trading at 18.8x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

GTM4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

Market CapQuality
$1.11B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.833/10

Elevated debt levels

Return on EquityProfitability
-65.3%2/10

ROE of -65.3% — below average capital efficiency

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 : GTM

The strongest argument for GTM centers on Price/Book, Operating Margin, EPS Growth.

Bear Case : ADP

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

Bear Case : GTM

The primary concerns for GTM are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.83 is elevated, increasing financial risk.

Key Dynamics to Monitor

ADP profiles as a mature stock while GTM is a turnaround play — different risk/reward profiles.

GTM carries more volatility with a beta of 0.87 — expect wider price swings.

ADP is growing revenue faster at 6.8% — 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 52/100), backed by strong 20.1% margins. GTM offers better value entry with a 77.7% margin of safety. Both earn "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.

ZoomInfo Technologies Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ZoomInfo Technologies Inc., provides go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals in the United States and internationally. The company is headquartered in Vancouver, Washington.

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