WallStSmart

Automatic Data Processing Inc (ADP)vsRiskified Ltd (RSKD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 5947% more annual revenue ($22.26B vs $368.15M). ADP leads profitability with a 20.3% profit margin vs -4.2%. ADP earns a higher WallStSmart Score of 64/100 (C+).

ADP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 3.3Quality: 3.5
Piotroski: 2/9Altman Z: 0.53

RSKD

Avoid

30

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 6.7Quality: 7.5
Piotroski: 4/9Altman Z: 1.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-79.9%)

Margin of Safety

-79.9%

Fair Value

$168.59

Current Price

$307.92

$139.33 premium

UndervaluedFair: $168.59Overvalued
RSKDUndervalued (+55.9%)

Margin of Safety

+55.9%

Fair Value

$9.96

Current Price

$9.42

$0.54 discount

UndervaluedFair: $9.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP4 strengths · Avg: 9.0/10
Return on EquityProfitability
88.9%10/10

Every $100 of equity generates 89 in profit

Market CapQuality
$116.00B9/10

Large-cap with strong market position

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

RSKD2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.8%8/10

Revenue surging 21.8% year-over-year

Areas to Watch

ADP4 concerns · Avg: 3.0/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.702/10

Expensive relative to growth rate

RSKD4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.13B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-7.5%2/10

ROE of -7.5% — below average capital efficiency

Altman Z-ScoreHealth
1.412/10

Distress zone — elevated risk

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 20.3% and operating margin at 26.7%.

Bull Case : RSKD

The strongest argument for RSKD centers on Debt/Equity, Revenue Growth. Revenue growth of 21.8% demonstrates continued momentum.

Bear Case : ADP

The primary concerns for ADP are P/E Ratio, Debt/Equity, Piotroski F-Score.

Bear Case : RSKD

The primary concerns for RSKD are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

ADP profiles as a mature stock while RSKD is a growth play — different risk/reward profiles.

RSKD carries more volatility with a beta of 1.26 — expect wider price swings.

RSKD is growing revenue faster at 21.8% — sustainability is the question.

ADP generates stronger free cash flow (598M), providing more financial flexibility.

Bottom Line

ADP scores higher overall (64/100 vs 30/100), backed by strong 20.3% margins. RSKD offers better value entry with a 55.9% margin of safety. Both earn "Buy" and "Avoid" 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.

Riskified Ltd

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Riskified Ltd. is a leading player in the fraud prevention industry, specializing in advanced machine learning and data analytics solutions designed for eCommerce merchants. By improving transaction approval rates and reducing fraud-related losses, the company helps safeguard merchant revenues while enhancing customer experiences. With a strong foothold in the rapidly evolving digital payments sector, Riskified is well-positioned for sustained growth and innovation, continually leveraging its technological expertise to strengthen its competitive advantage in the dynamic eCommerce landscape.

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