Automatic Data Processing Inc (ADP)vsSAP SE ADR (SAP)
ADP
Automatic Data Processing Inc
$271.32
-0.80%
TECHNOLOGY · Cap: $107.44B
SAP
SAP SE ADR
$206.16
+3.36%
TECHNOLOGY · Cap: $208.77B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 74% more annual revenue ($38.19B vs $21.95B). SAP leads profitability with a 20.4% profit margin vs 20.1%. SAP appears more attractively valued with a PEG of 1.63. SAP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy64
out of 100
Grade: C+
SAP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.6%
Fair Value
$162.16
Current Price
$271.32
$109.16 premium
Margin of Safety
-30.4%
Fair Value
$150.68
Current Price
$206.16
$55.48 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 23.1%
Generating 2.0B in free cash flow
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 27.6%
Earnings expanding 30.6% YoY
Generating 3.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 17.9x book value
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 65.9x book value
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 23.1%.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 27.6%.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : SAP
The primary concerns for SAP are PEG Ratio, Price/Book.
Key Dynamics to Monitor
ADP carries more volatility with a beta of 0.82 — expect wider price swings.
SAP is growing revenue faster at 9.4% — sustainability is the question.
SAP generates stronger free cash flow (3.0B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADP scores higher overall (64/100 vs 64/100), 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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