WallStSmart

Automatic Data Processing Inc (ADP)vsLivePerson Inc (LPSN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 9626% more annual revenue ($22.26B vs $228.89M). ADP leads profitability with a 20.3% profit margin vs -51.9%. ADP appears more attractively valued with a PEG of 2.70. 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

LPSN

Avoid

32

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 5.7Quality: 5.5
Piotroski: 5/9Altman Z: -2.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-79.9%)

Margin of Safety

-79.9%

Fair Value

$168.59

Current Price

$307.92

$139.33 premium

UndervaluedFair: $168.59Overvalued
LPSNUndervalued (+82.1%)

Margin of Safety

+82.1%

Fair Value

$16.12

Current Price

$3.10

$13.02 discount

UndervaluedFair: $16.12Overvalued

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%

LPSN1 strengths · Avg: 10.0/10
Debt/EquityHealth
-3.2710/10

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

LPSN4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$38.25M3/10

Smaller company, higher risk/reward

PEG RatioValuation
7.222/10

Expensive relative to growth rate

Return on EquityProfitability
-599.0%2/10

ROE of -599.0% — 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 20.3% and operating margin at 26.7%.

Bull Case : LPSN

The strongest argument for LPSN centers on Debt/Equity.

Bear Case : ADP

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

Bear Case : LPSN

The primary concerns for LPSN are EPS Growth, Market Cap, PEG Ratio.

Key Dynamics to Monitor

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

LPSN carries more volatility with a beta of 1.44 — 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 32/100), backed by strong 20.3% margins. LPSN offers better value entry with a 82.1% margin of safety. Both earn "Buy" and "Avoid" 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.

LivePerson Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

LivePerson, Inc., offers conversational commerce solutions. The company is headquartered in New York, New York.

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