Automatic Data Processing Inc (ADP)vsRed Violet Inc (RDVT)
ADP
Automatic Data Processing Inc
$286.08
+0.25%
TECHNOLOGY · Cap: $113.74B
RDVT
Red Violet Inc
$82.40
+1.44%
TECHNOLOGY · Cap: $1.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 22064% more annual revenue ($21.95B vs $99.02M). ADP leads profitability with a 20.1% profit margin vs 16.5%. ADP trades at a lower P/E of 26.2x. ADP earns a higher WallStSmart Score of 62/100 (C+).
ADP
Buy62
out of 100
Grade: C+
RDVT
Buy56
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
-17.0%
Fair Value
$35.15
Current Price
$82.40
$47.25 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
Earnings expanding 88.9% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Strong operational efficiency at 23.0%
Revenue surging 22.7% 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 10.4x book value
Smaller company, higher risk/reward
Premium valuation, high expectations priced in
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 : RDVT
The strongest argument for RDVT centers on EPS Growth, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 16.5% and operating margin at 23.0%. Revenue growth of 22.7% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : RDVT
The primary concerns for RDVT are Price/Book, Market Cap, P/E Ratio. A P/E of 70.9x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while RDVT is a growth play — different risk/reward profiles.
RDVT carries more volatility with a beta of 1.78 — expect wider price swings.
RDVT is growing revenue faster at 22.7% — 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 56/100), 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.
Red Violet Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Red Violet, Inc., a software and services company, specializes in proprietary technologies and applies analytical capabilities to deliver identity intelligence in the United States. The company is headquartered in Boca Raton, Florida.
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