Automatic Data Processing Inc (ADP)vsPTC Inc (PTC)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
PTC
PTC Inc
$194.97
+0.18%
TECHNOLOGY · Cap: $20.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 643% more annual revenue ($21.95B vs $2.95B). PTC leads profitability with a 41.4% profit margin vs 20.1%. PTC appears more attractively valued with a PEG of 1.31. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
PTC
Buy60
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
-59.3%
Fair Value
$97.70
Current Price
$194.97
$97.27 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 35 in profit
Keeps 41 of every $100 in revenue as profit
Strong operational efficiency at 28.2%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 18.9x book value
Weak financial health signals
Revenue declined 6.8%
Earnings declined 12.0%
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 : PTC
The strongest argument for PTC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 41.4% and operating margin at 28.2%. PEG of 1.31 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 : PTC
The primary concerns for PTC are Revenue Growth, EPS Growth.
Key Dynamics to Monitor
ADP profiles as a mature stock while PTC is a declining play — different risk/reward profiles.
PTC carries more volatility with a beta of 0.99 — 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 60/100), 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.
PTC Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
PTC Inc. is an American computer software and services company founded in 1985 and headquartered in Boston, Massachusetts.
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