Automatic Data Processing Inc (ADP)vsQ2 Holdings (QTWO)
ADP
Automatic Data Processing Inc
$293.84
+2.71%
TECHNOLOGY · Cap: $113.74B
QTWO
Q2 Holdings
$65.28
-3.87%
TECHNOLOGY · Cap: $3.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 2494% more annual revenue ($21.95B vs $846.20M). ADP leads profitability with a 20.1% profit margin vs 10.9%. 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+
QTWO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.1%
Fair Value
$165.18
Current Price
$293.84
$128.66 premium
Intrinsic value data unavailable for QTWO.
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
Earnings expanding 156.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 19.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : QTWO
The strongest argument for QTWO centers on EPS Growth, Debt/Equity. Revenue growth of 12.6% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : QTWO
The primary concerns for QTWO are PEG Ratio, P/E Ratio, Altman Z-Score. A P/E of 44.2x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while QTWO is a value play — different risk/reward profiles.
QTWO carries more volatility with a beta of 1.34 — expect wider price swings.
QTWO is growing revenue faster at 12.6% — 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 55/100), 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.
Q2 Holdings
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Q2 Holdings, Inc. provides cloud-based digital banking solutions to Community and Regional Financial Institutions (RCFIs) in the United States. The company is headquartered in Austin, Texas.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?