Automatic Data Processing Inc (ADP)vsShopify Inc (SHOP)
ADP
Automatic Data Processing Inc
$214.60
-0.29%
TECHNOLOGY · Cap: $88.74B
SHOP
Shopify Inc
$109.54
-5.60%
TECHNOLOGY · Cap: $139.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 75% more annual revenue ($21.60B vs $12.37B). ADP leads profitability with a 20.1% profit margin vs 10.8%. ADP appears more attractively valued with a PEG of 2.09. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
SHOP
Buy50
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
+18.2%
Fair Value
$143.01
Current Price
$109.54
$33.47 discount
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
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Trading at 13.5x book value
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 11.4x 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, Operating Margin, Market Cap. Profitability is solid with margins at 20.1% and operating margin at 30.2%.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 105.4x 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 2.59 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
ADP generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (66/100 vs 50/100), backed by strong 20.1% margins. SHOP offers better value entry with a 18.2% margin of safety. 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.
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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