Automatic Data Processing Inc (ADP)vsPTC Inc (PTC)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
PTC
PTC Inc
$132.46
+3.88%
TECHNOLOGY · Cap: $14.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 621% more annual revenue ($21.60B vs $3.00B). PTC leads profitability with a 41.6% profit margin vs 20.1%. PTC appears more attractively valued with a PEG of 1.02. PTC earns a higher WallStSmart Score of 80/100 (A-).
ADP
Strong Buy66
out of 100
Grade: B-
PTC
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$263.87
$105.05 premium
Margin of Safety
-68.7%
Fair Value
$92.25
Current Price
$132.46
$40.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Strong operational efficiency at 30.2%
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Generating 2.0B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 32 in profit
Keeps 42 of every $100 in revenue as profit
Strong operational efficiency at 41.6%
Earnings expanding 268.9% YoY
Revenue surging 21.7% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : ADP
The strongest argument for ADP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 20.1% and operating margin at 30.2%.
Bull Case : PTC
The strongest argument for PTC centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 41.6% and operating margin at 41.6%. Revenue growth of 21.7% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : PTC
No major red flags identified for PTC, but monitor valuation.
Key Dynamics to Monitor
ADP profiles as a mature stock while PTC is a growth play — different risk/reward profiles.
PTC carries more volatility with a beta of 0.99 — expect wider price swings.
PTC is growing revenue faster at 21.7% — sustainability is the question.
ADP generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
PTC scores higher overall (80/100 vs 66/100), backed by strong 41.6% margins and 21.7% revenue growth. Both earn "Exceptional Buy" and "Strong 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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