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ADBE vs ADP

ADBE
Adobe Inc.
BULLISH
Price
$243.08
Market Cap
$99.09B
Sector
Technology
AI Confidence
65%
ADP
Automatic Data Processing, Inc.
NEUTRAL
Price
$208.52
Market Cap
$84.34B
Sector
Technology
AI Confidence
78%

Valuation

P/E Ratio
ADBE
14.16
ADP
20.03
Forward P/E
ADBE
9.22
ADP
17.43
P/B Ratio
ADBE
8.63
ADP
13.14
P/S Ratio
ADBE
4.05
ADP
3.98
EV/EBITDA
ADBE
10.3
ADP
13.9

Profitability

Gross Margin
ADBE
89.4%
ADP
48.35%
Operating Margin
ADBE
38.76%
ADP
26.28%
Profit Margin
ADBE
29.48%
ADP
19.96%
ROE
ADBE
58.77%
ADP
73.84%
ROA
ADBE
18.91%
ADP
4.71%

Growth

Revenue Growth
ADBE
12.0%
ADP
6.2%
Earnings Growth
ADBE
11.1%
ADP
11.5%

Financial Health

Debt/Equity
ADBE
0.58
ADP
0.7
Current Ratio
ADBE
0.91
ADP
1.03
Quick Ratio
ADBE
0.79
ADP
0.08

Dividends

Dividend Yield
ADBE
--
ADP
3.26%
Payout Ratio
ADBE
0.0%
ADP
60.71%

AI Verdict

ADBE BULLISH

ADBE shows bullish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Key strengths include strong valuation and growth metrics.

Strengths
Attractive valuation with P/E of 14.2
Strong profitability (29.5% margin)
Strong ROE of 58.8%
Risks
Premium vs Graham Number ($104.3)
ADP NEUTRAL

ADP's Piotroski F-Score of 4/9 indicates a weak financial health profile, signaling potential instability despite strong profitability metrics. The absence of an Altman Z-Score raises concern about default risk, though the company's low debt-to-equity (0.70) and stable cash flow trends offer some mitigation. The stock trades at $208.52, below its intrinsic value of $252.44 and Graham Number of $60.96, suggesting undervaluation on a defensive basis, but the current price is elevated relative to the Graham Number due to growth expectations. Analysts maintain a 'hold' recommendation with a target price of $272.00, reflecting cautious optimism. Insider selling activity over the past six months adds bearish sentiment.

Strengths
High ROE of 73.84% indicates exceptional capital efficiency
Strong gross margin (48.35%) and operating margin (26.28%) reflect pricing power and cost control
Consistent earnings beat rate (76% over last 4 quarters) with positive average surprise of 1.37%
Risks
Piotroski F-Score of 4/9 signals weak financial health and potential operational instability
Extremely low quick ratio (0.08) raises concerns about short-term liquidity and working capital management
Negative technical trend (0/100) and prolonged price decline (1Y: -26.6%, 6M: -28.5%) indicate bearish momentum

Compare Another Pair

ADBE vs ADP: Head-to-Head Comparison

This page compares Adobe Inc. (ADBE) and Automatic Data Processing, Inc. (ADP) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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