Automatic Data Processing Inc (ADP)vsManhattan Associates Inc (MANH)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
MANH
Manhattan Associates Inc
$239.73
+2.46%
TECHNOLOGY · Cap: $12.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 1849% more annual revenue ($21.95B vs $1.13B). ADP leads profitability with a 20.1% profit margin vs 18.7%. ADP appears more attractively valued with a PEG of 2.50. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
MANH
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$286.08
$120.90 premium
Margin of Safety
-18.7%
Fair Value
$120.24
Current Price
$239.73
$119.49 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 73 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 23.5%
Generating 1.4B in free cash flow
Every $100 of equity generates 133 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 25.0%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 88.8x book value
Earnings declined 8.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : MANH
The strongest argument for MANH centers on Return on Equity, Altman Z-Score, Operating Margin. Profitability is solid with margins at 18.7% and operating margin at 25.0%.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : MANH
The primary concerns for MANH are PEG Ratio, P/E Ratio, Price/Book. A P/E of 65.2x leaves little room for execution misses.
Key Dynamics to Monitor
MANH carries more volatility with a beta of 0.95 — expect wider price swings.
MANH is growing revenue faster at 9.3% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADP scores higher overall (62/100 vs 53/100), backed by strong 20.1% 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.
Manhattan Associates Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Manhattan Associates, Inc. develops, sells, implements, services, and maintains software solutions to manage supply chains, inventory, and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The company is headquartered in Atlanta, Georgia.
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