Automatic Data Processing Inc (ADP)vsSAP SE ADR (SAP)
ADP
Automatic Data Processing Inc
$214.60
+2.75%
TECHNOLOGY · Cap: $88.74B
SAP
SAP SE ADR
$149.51
-1.27%
TECHNOLOGY · Cap: $192.92B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 73% more annual revenue ($37.34B vs $21.60B). ADP leads profitability with a 20.1% profit margin vs 19.6%. SAP appears more attractively valued with a PEG of 1.44. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
SAP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.1%
Fair Value
$158.17
Current Price
$214.60
$56.43 premium
Margin of Safety
-34.8%
Fair Value
$145.80
Current Price
$149.51
$3.71 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
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Generating 3.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 13.5x 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 : SAP
The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
ADP is growing revenue faster at 7.0% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADP scores higher overall (66/100 vs 59/100), backed by strong 20.1% margins. Both earn "Strong 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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