Automatic Data Processing Inc (ADP)vsSprout Social Inc (SPT)
ADP
Automatic Data Processing Inc
$263.87
-3.48%
TECHNOLOGY · Cap: $97.18B
SPT
Sprout Social Inc
$8.82
+1.50%
TECHNOLOGY · Cap: $518.11M
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 4498% more annual revenue ($21.60B vs $469.75M). ADP leads profitability with a 20.1% profit margin vs -8.2%. SPT appears more attractively valued with a PEG of 0.08. ADP earns a higher WallStSmart Score of 66/100 (B-).
ADP
Strong Buy66
out of 100
Grade: B-
SPT
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$158.82
Current Price
$263.87
$105.05 premium
Intrinsic value data unavailable for SPT.
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
Growing faster than its price suggests
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 16.6x book value
Distress zone — elevated risk
0.0% earnings growth
Smaller company, higher risk/reward
Weak financial health signals
ROE of -17.9% — below average capital efficiency
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 : SPT
The strongest argument for SPT centers on PEG Ratio, Debt/Equity, Price/Book. Revenue growth of 11.2% demonstrates continued momentum. PEG of 0.08 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : SPT
The primary concerns for SPT are EPS Growth, Market Cap, Piotroski F-Score.
Key Dynamics to Monitor
ADP profiles as a mature stock while SPT is a turnaround play — different risk/reward profiles.
SPT carries more volatility with a beta of 0.98 — expect wider price swings.
SPT is growing revenue faster at 11.2% — 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 47/100), backed by strong 20.1% margins. Both earn "Strong 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.
Sprout Social Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Sprout Social, Inc. designs, develops, and operates a web-based social media management tool in the Americas, EMEA, and Asia Pacific. The company is headquartered in Chicago, Illinois.
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