WallStSmart

Automatic Data Processing Inc (ADP)vsPerfect Corp. (PERF)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 30782% more annual revenue ($21.95B vs $71.07M). ADP leads profitability with a 20.1% profit margin vs 8.1%. PERF appears more attractively valued with a PEG of 2.11. ADP earns a higher WallStSmart Score of 62/100 (C+).

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

PERF

Hold

42

out of 100

Grade: D

Growth: 7.3Profit: 4.0Value: 6.0Quality: 6.5
Piotroski: 3/9Altman Z: 0.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$286.08

$120.90 premium

UndervaluedFair: $165.18Overvalued
PERFUndervalued (+74.7%)

Margin of Safety

+74.7%

Fair Value

$5.92

Current Price

$1.99

$3.93 discount

UndervaluedFair: $5.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$113.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

PERF3 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
550.0%10/10

Earnings expanding 550.0% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Areas to Watch

ADP4 concerns · Avg: 3.8/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
18.9x4/10

Trading at 18.9x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PERF4 concerns · Avg: 3.8/10
PEG RatioValuation
2.114/10

Expensive relative to growth rate

P/E RatioValuation
33.2x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$202.68M3/10

Smaller company, higher risk/reward

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 20.1% and operating margin at 23.5%.

Bull Case : PERF

The strongest argument for PERF centers on Price/Book, EPS Growth, Debt/Equity.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : PERF

The primary concerns for PERF are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

ADP profiles as a mature stock while PERF is a value play — different risk/reward profiles.

ADP carries more volatility with a beta of 0.84 — expect wider price swings.

ADP is growing revenue faster at 6.8% — 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 42/100), backed by strong 20.1% margins. PERF offers better value entry with a 74.7% 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.

Perfect Corp.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Perfumania Holdings, Inc., is a specialty retailer and distributor of fragrances and related beauty products in the United States.

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