Automatic Data Processing Inc (ADP)vsShopify Inc (SHOP)
ADP
Automatic Data Processing Inc
$303.35
-1.23%
TECHNOLOGY · Cap: $116.00B
SHOP
Shopify Inc
$148.91
+3.59%
TECHNOLOGY · Cap: $215.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 68% more annual revenue ($22.26B vs $13.27B). ADP leads profitability with a 20.3% profit margin vs 14.5%. SHOP appears more attractively valued with a PEG of 2.36. ADP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy64
out of 100
Grade: C+
SHOP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-79.9%
Fair Value
$168.59
Current Price
$303.35
$134.76 premium
Margin of Safety
+22.4%
Fair Value
$150.73
Current Price
$148.91
$1.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 89 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 26.7%
Mega-cap, among the largest globally
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Moderate valuation
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 15.1x book value
Weak financial health signals
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 20.3% and operating margin at 26.7%.
Bull Case : SHOP
The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are P/E Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 112.0x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.63 — expect wider price swings.
SHOP is growing revenue faster at 33.7% — sustainability is the question.
SHOP generates stronger free cash flow (654M), providing more financial flexibility.
Bottom Line
ADP scores higher overall (64/100 vs 63/100), backed by strong 20.3% margins. SHOP offers better value entry with a 22.4% margin of safety. 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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