WallStSmart

Automatic Data Processing Inc (ADP)vsAtlassian Corp Plc (TEAM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Automatic Data Processing Inc generates 234% more annual revenue ($21.95B vs $6.57B). ADP leads profitability with a 20.1% profit margin vs -0.8%. TEAM appears more attractively valued with a PEG of 2.03. 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

TEAM

Hold

45

out of 100

Grade: D+

Growth: 9.3Profit: 4.0Value: 6.3Quality: 3.5
Piotroski: 5/9Altman Z: -0.31
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
TEAMUndervalued (+81.4%)

Margin of Safety

+81.4%

Fair Value

$468.01

Current Price

$220.12

$247.89 discount

UndervaluedFair: $468.01Overvalued

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

TEAM3 strengths · Avg: 9.0/10
EPS GrowthGrowth
172.2%10/10

Earnings expanding 172.2% YoY

Market CapQuality
$54.96B9/10

Large-cap with strong market position

Revenue GrowthGrowth
27.6%8/10

Revenue surging 27.6% year-over-year

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

TEAM4 concerns · Avg: 2.8/10
PEG RatioValuation
2.034/10

Expensive relative to growth rate

Debt/EquityHealth
1.163/10

Elevated debt levels

Price/BookValuation
52.7x2/10

Trading at 52.7x book value

Return on EquityProfitability
-5.1%2/10

ROE of -5.1% — below average capital efficiency

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 : TEAM

The strongest argument for TEAM centers on EPS Growth, Market Cap, Revenue Growth. Revenue growth of 27.6% demonstrates continued momentum.

Bear Case : ADP

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

Bear Case : TEAM

The primary concerns for TEAM are PEG Ratio, Debt/Equity, Price/Book.

Key Dynamics to Monitor

ADP profiles as a mature stock while TEAM is a growth play — different risk/reward profiles.

TEAM carries more volatility with a beta of 1.23 — expect wider price swings.

TEAM is growing revenue faster at 27.6% — 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 45/100), backed by strong 20.1% margins. TEAM offers better value entry with a 81.4% margin of safety. 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.

Atlassian Corp Plc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Atlassian Corporation Plc designs, develops, licenses and maintains various software products worldwide. The company is headquartered in Sydney, Australia.

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