Automatic Data Processing Inc (ADP)vsShopify Inc (SHOP)
ADP
Automatic Data Processing Inc
$263.68
-2.21%
TECHNOLOGY · Cap: $106.57B
SHOP
Shopify Inc
$147.74
+7.12%
TECHNOLOGY · Cap: $165.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 65% more annual revenue ($21.95B vs $13.27B). ADP leads profitability with a 20.1% profit margin vs 14.5%. SHOP appears more attractively valued with a PEG of 1.73. SHOP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy62
out of 100
Grade: C+
SHOP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.8%
Fair Value
$163.78
Current Price
$263.68
$99.90 premium
Margin of Safety
+23.5%
Fair Value
$152.79
Current Price
$147.74
$5.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 73 in profit
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 23.5%
Generating 1.2B in free cash flow
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
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 17.4x book value
Weak financial health signals
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 15.0x 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 20.1% and operating margin at 23.5%.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Piotroski F-Score.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 86.8x 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 2.62 — expect wider price swings.
SHOP is growing revenue faster at 33.7% — sustainability is the question.
ADP generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
SHOP scores higher overall (64/100 vs 62/100) and 33.7% revenue growth. 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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