Analyzing SMC Entertainment (OTCMKTS:SMCE) and Automatic Data Processing (NASDAQ:ADP)

SMC Entertainment (OTCMKTS:SMCE) and Automatic Data Processing (NASDAQ:ADP) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for SMC Entertainment and Automatic Data Processing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC Entertainment	0	0	0	0	N/A
Automatic Data Processing	2	8	2	0	2.00

Automatic Data Processing has a consensus price target of $262.18, indicating a potential downside of 0.72%. Given Automatic Data Processing’s higher possible upside, analysts clearly believe Automatic Data Processing is more favorable than SMC Entertainment.

Earnings and Valuation

This table compares SMC Entertainment and Automatic Data Processing’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC Entertainment	N/A	N/A	-$1.56 million	N/A	N/A
Automatic Data Processing	$19.20 billion	5.63	$3.41 billion	$8.96	29.47

Automatic Data Processing has higher revenue and earnings than SMC Entertainment.

Profitability

This table compares SMC Entertainment and Automatic Data Processing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SMC Entertainment	N/A	-8.75%	-3.95%
Automatic Data Processing	19.54%	89.20%	6.73%

Risk and Volatility

SMC Entertainment has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Automatic Data Processing has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

80.0% of Automatic Data Processing shares are owned by institutional investors. 0.3% of Automatic Data Processing shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Automatic Data Processing beats SMC Entertainment on 10 of the 10 factors compared between the two stocks.

About SMC Entertainment

SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.

About Automatic Data Processing

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.