WallStSmart

Automatic Data Processing Inc (ADP)vsSonos Inc (SONO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 1394% more annual revenue ($22.26B vs $1.49B). ADP leads profitability with a 20.3% profit margin vs 3.8%. ADP trades at a lower P/E of 26.1x. ADP earns a higher WallStSmart Score of 64/100 (C+).

ADP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 3.3Quality: 4.0
Piotroski: 2/9Altman Z: 0.53

SONO

Hold

47

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADPSignificantly Overvalued (-74.7%)

Margin of Safety

-74.7%

Fair Value

$168.19

Current Price

$303.35

$135.16 premium

UndervaluedFair: $168.19Overvalued
SONOSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$12.48

Current Price

$16.33

$3.85 premium

UndervaluedFair: $12.48Overvalued

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
$116.00B9/10

Large-cap with strong market position

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

Free Cash FlowQuality
$1.36B8/10

Generating 1.4B in free cash flow

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

ADP4 concerns · Avg: 2.8/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.702/10

Expensive relative to growth rate

Price/BookValuation
23.6x2/10

Trading at 23.6x book value

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

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 20.3% and operating margin at 26.7%.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : ADP

The primary concerns for ADP are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ADP profiles as a mature stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.88 — expect wider price swings.

SONO 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 (64/100 vs 47/100), backed by strong 20.3% margins. Both earn "Buy" and "Hold" 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.

Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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