Automatic Data Processing Inc (ADP)vsServiceNow Inc (NOW)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
NOW
ServiceNow Inc
$150.13
-26.95%
TECHNOLOGY · Cap: $146.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 49% more annual revenue ($21.95B vs $14.73B). ADP leads profitability with a 20.1% profit margin vs 11.3%. NOW appears more attractively valued with a PEG of 1.01. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
NOW
Hold47
out of 100
Grade: D+
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
+74.4%
Fair Value
$617.23
Current Price
$150.13
$467.10 discount
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
Large-cap with strong market position
Revenue surging 24.0% year-over-year
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Trading at 12.4x book value
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
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 : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : NOW
The primary concerns for NOW are Price/Book, Altman Z-Score, Operating Margin. A P/E of 88.7x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while NOW is a growth play — different risk/reward profiles.
NOW carries more volatility with a beta of 0.99 — expect wider price swings.
NOW is growing revenue faster at 24.0% — sustainability is the question.
ADP generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (62/100 vs 47/100), backed by strong 20.1% margins. NOW offers better value entry with a 74.4% margin of safety. Both earn "Buy" and "Hold" 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.
ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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