Automatic Data Processing Inc (ADP)vsSoundHound AI Inc (SOUN)
ADP
Automatic Data Processing Inc
$293.84
+2.71%
TECHNOLOGY · Cap: $116.00B
SOUN
SoundHound AI Inc
$4.22
-3.21%
TECHNOLOGY · Cap: $1.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 10856% more annual revenue ($22.26B vs $203.20M). ADP leads profitability with a 20.3% profit margin vs -67.4%. ADP earns a higher WallStSmart Score of 64/100 (C+).
ADP
Buy64
out of 100
Grade: C+
SOUN
Avoid28
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.7%
Fair Value
$168.19
Current Price
$293.84
$125.65 premium
Margin of Safety
+7.3%
Fair Value
$8.59
Current Price
$4.22
$4.37 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 26.7%
Generating 1.4B in free cash flow
Revenue surging 45.0% year-over-year
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Weak financial health signals
Expensive relative to growth rate
Trading at 22.8x book value
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -36.7% — below average capital efficiency
Negative free cash flow — burning cash
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 : SOUN
The strongest argument for SOUN centers on Revenue Growth, Debt/Equity. Revenue growth of 45.0% demonstrates continued momentum.
Bear Case : ADP
The primary concerns for ADP are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : SOUN
The primary concerns for SOUN are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
ADP profiles as a mature stock while SOUN is a hypergrowth play — different risk/reward profiles.
SOUN carries more volatility with a beta of 2.86 — expect wider price swings.
SOUN is growing revenue faster at 45.0% — 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 28/100), backed by strong 20.3% margins. 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.
SoundHound AI Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SoundHound AI, Inc. develops an independent voice artificial intelligence (AI) platform that enables businesses in all industries to deliver high-quality conversational experiences to their customers. The company is headquartered in Santa Clara, California.
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