WallStSmart

Automatic Data Processing Inc (ADP)vsSimilarWeb Ltd (SMWB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 7324% more annual revenue ($21.95B vs $295.61M). ADP leads profitability with a 20.1% profit margin vs -7.4%. ADP earns a higher WallStSmart Score of 62/100 (C+).

ADP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

SMWB

Avoid

27

out of 100

Grade: F

Growth: 6.0Profit: 2.5Value: 6.7Quality: 2.5
Piotroski: 3/9Altman Z: -1.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$165.18

Current Price

$286.08

$120.90 premium

UndervaluedFair: $165.18Overvalued
SMWBUndervalued (+59.0%)

Margin of Safety

+59.0%

Fair Value

$9.50

Current Price

$8.98

$0.52 discount

UndervaluedFair: $9.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADP5 strengths · Avg: 8.8/10
Return on EquityProfitability
73.2%10/10

Every $100 of equity generates 73 in profit

Market CapQuality
$113.74B9/10

Large-cap with strong market position

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

SMWB0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

ADP4 concerns · Avg: 3.8/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
18.9x4/10

Trading at 18.9x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

SMWB4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$788.06M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : SMWB

SMWB has a balanced fundamental profile.

Bear Case : ADP

The primary concerns for ADP are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : SMWB

The primary concerns for SMWB are EPS Growth, Market Cap, Operating Margin. Debt-to-equity of 2.01 is elevated, increasing financial risk.

Key Dynamics to Monitor

ADP profiles as a mature stock while SMWB is a turnaround play — different risk/reward profiles.

SMWB carries more volatility with a beta of 1.30 — expect wider price swings.

SMWB is growing revenue faster at 8.8% — sustainability is the question.

ADP generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ADP scores higher overall (62/100 vs 27/100), backed by strong 20.1% margins. SMWB offers better value entry with a 59.0% margin of safety. Both earn "Buy" and "Avoid" 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.

SimilarWeb Ltd

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Similarweb Ltd. provides website traffic solutions through AI-driven data analytics globally. The company is headquartered in Tel Aviv, Israel.

Visit Website →

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