WallStSmart

Automatic Data Processing Inc (ADP)vsInterDigital Inc (IDCC)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 2723% more annual revenue ($22.26B vs $788.50M). IDCC leads profitability with a 38.3% profit margin vs 20.3%. IDCC appears more attractively valued with a PEG of 1.32. 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

IDCC

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 5.0Quality: 7.5
Piotroski: 3/9Altman Z: 3.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-79.9%)

Margin of Safety

-79.9%

Fair Value

$168.59

Current Price

$303.35

$134.76 premium

UndervaluedFair: $168.59Overvalued

Intrinsic value data unavailable for IDCC.

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%

IDCC5 strengths · Avg: 9.8/10
Return on EquityProfitability
33.2%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
38.3%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
53.5%10/10

Strong operational efficiency at 53.5%

Altman Z-ScoreHealth
3.7110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

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

IDCC4 concerns · Avg: 2.8/10
P/E RatioValuation
38.4x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-13.4%2/10

Revenue declined 13.4%

EPS GrowthGrowth
-36.4%2/10

Earnings declined 36.4%

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 : IDCC

The strongest argument for IDCC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 38.3% and operating margin at 53.5%. PEG of 1.32 suggests the stock is reasonably priced for its growth.

Bear Case : ADP

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

Bear Case : IDCC

The primary concerns for IDCC are P/E Ratio, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

ADP profiles as a mature stock while IDCC is a declining play — different risk/reward profiles.

IDCC carries more volatility with a beta of 1.42 — expect wider price swings.

ADP is growing revenue faster at 6.1% — sustainability is the question.

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

Bottom Line

ADP scores higher overall (64/100 vs 56/100), backed by strong 20.3% margins. 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.

InterDigital Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. The company is headquartered in Wilmington, Delaware.

Want to dig deeper into these stocks?