WallStSmart

Automatic Data Processing Inc (ADP)vsAMTD Digital Inc. (HKD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 15771% more annual revenue ($21.60B vs $136.10M). HKD leads profitability with a 40.2% profit margin vs 20.1%. HKD trades at a lower P/E of 8.9x. HKD earns a higher WallStSmart Score of 73/100 (B).

ADP

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 4.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.53

HKD

Strong Buy

73

out of 100

Grade: B

Growth: 10.0Profit: 9.0Value: 8.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-60.5%)

Margin of Safety

-60.5%

Fair Value

$158.82

Current Price

$263.87

$105.05 premium

UndervaluedFair: $158.82Overvalued
HKDUndervalued (+75.3%)

Margin of Safety

+75.3%

Fair Value

$6.06

Current Price

$1.59

$4.47 discount

UndervaluedFair: $6.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 9.2/10
Return on EquityProfitability
68.4%10/10

Every $100 of equity generates 68 in profit

Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

Market CapQuality
$97.18B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Free Cash FlowQuality
$2.04B8/10

Generating 2.0B in free cash flow

HKD6 strengths · Avg: 10.0/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
40.2%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
60.5%10/10

Strong operational efficiency at 60.5%

Revenue GrowthGrowth
340.9%10/10

Revenue surging 340.9% year-over-year

EPS GrowthGrowth
81.0%10/10

Earnings expanding 81.0% YoY

Areas to Watch

ADP3 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Price/BookValuation
16.6x4/10

Trading at 16.6x book value

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

HKD3 concerns · Avg: 3.0/10
Market CapQuality
$505.99M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : HKD

The strongest argument for HKD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 40.2% and operating margin at 60.5%. Revenue growth of 340.9% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.

Bear Case : HKD

The primary concerns for HKD are Market Cap, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

ADP profiles as a mature stock while HKD is a growth play — different risk/reward profiles.

HKD carries more volatility with a beta of 2.00 — expect wider price swings.

HKD is growing revenue faster at 340.9% — sustainability is the question.

ADP generates stronger free cash flow (2.0B), providing more financial flexibility.

Bottom Line

HKD scores higher overall (73/100 vs 66/100), backed by strong 40.2% margins and 340.9% revenue growth. Both earn "Strong Buy" and "Strong 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.

AMTD Digital Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

AMTD Digital Inc. designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions.

Want to dig deeper into these stocks?