WallStSmart

Automatic Data Processing Inc (ADP)vsHubSpot Inc (HUBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 555% more annual revenue ($21.60B vs $3.30B). ADP leads profitability with a 20.1% profit margin vs 3.0%. HUBS appears more attractively valued with a PEG of 0.36. ADP earns a higher WallStSmart Score of 66/100 (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

HUBS

Buy

58

out of 100

Grade: C

Growth: 9.3Profit: 4.0Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 1.60
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
HUBSUndervalued (+59.0%)

Margin of Safety

+59.0%

Fair Value

$510.89

Current Price

$251.12

$259.77 discount

UndervaluedFair: $510.89Overvalued

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

HUBS4 strengths · Avg: 9.3/10
PEG RatioValuation
0.3610/10

Growing faster than its price suggests

EPS GrowthGrowth
968.0%10/10

Earnings expanding 968.0% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
23.4%8/10

Revenue surging 23.4% year-over-year

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

HUBS4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.604/10

Distress zone — elevated risk

Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.3%3/10

Operating margin of 3.3%

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 : HUBS

The strongest argument for HUBS centers on PEG Ratio, EPS Growth, Debt/Equity. Revenue growth of 23.4% demonstrates continued momentum. PEG of 0.36 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 : HUBS

The primary concerns for HUBS are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 117.4x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

HUBS carries more volatility with a beta of 1.22 — expect wider price swings.

HUBS is growing revenue faster at 23.4% — 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 58/100), backed by strong 20.1% margins. HUBS offers better value entry with a 59.0% 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.

HubSpot Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

HubSpot, Inc. provides a cloud-based customer relationship management (CRM) platform for companies in the Americas, Europe, and Asia Pacific. The company is headquartered in Cambridge, Massachusetts.

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