Automatic Data Processing, Inc. (ADP) vs Cadence Design Systems, Inc. (CDNS)
Automatic Data Processing, Inc. and Cadence Design Systems, Inc. are both Software Application companies. Automatic Data Processing, Inc. is the larger, with a market value of $104.2B against $88.7B — 1.2× the size. Automatic Data Processing, Inc. trades at the lower P/E: 24.0× against 64.5×. Cadence Design Systems, Inc. grew revenue faster over the last twelve months: 14.7% against 6.74%. Cadence Design Systems, Inc. has the higher net margin (23.6% vs 20.1%) and the lower return on invested capital (14.0% vs 53.4%). Both pay a dividend; Automatic Data Processing, Inc. yields more (1.96% vs 0.43%). Across the 23 metrics below, Cadence Design Systems, Inc. leads on 12 and Automatic Data Processing, Inc. on 11.
Valuation
Profitability
| Metric | ADP | CDNS | Software Application median |
|---|---|---|---|
| Gross margin | 46.42% | 85.87% | 67.03% |
| Operating margin | 26.33% | 30.33% | 0.00% |
| Net margin | 20.11% | 23.61% | 0.00% |
| Free cash flow margin | 21.76% | 28.63% | 4.32% |
| Return on equity | 72.24% | 23.23% | 0.00% |
| Return on assets | 7.57% | 12.77% | 0.00% |
| Return on invested capital | 53.39% | 14.01% | 0.00% |
Growth
Health
Dividend
Size
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