Automatic Data Processing, Inc. (ADP) vs Salesforce, Inc. (CRM)

Automatic Data Processing, Inc. and Salesforce, Inc. are both Software Application companies. Salesforce, Inc. is the larger, with a market value of $203.1B against $113.2B — 1.8× the size. Salesforce, Inc. trades at the lower P/E: 21.9× against 26.3×. Salesforce, Inc. grew revenue faster over the last twelve months: 11.2% against 6.74%. Salesforce, Inc. has the higher net margin (22.0% vs 20.1%) and the lower return on invested capital (8.24% vs 53.4%). Both pay a dividend; Automatic Data Processing, Inc. yields more (2.35% vs 0.72%). Across the 23 metrics below, Salesforce, Inc. leads on 16 and Automatic Data Processing, Inc. on 7.

Valuation

Metric ADP CRM Software Application median
P/E 26.34 21.86 25.41
P/S 5.30 4.49 2.73
P/B 19.27 5.14 2.57
Price to free cash flow 24.33 13.02 17.58
EV/EBITDA 15.78 15.35 15.36
EV/Sales 5.37 5.22 2.59
Earnings yield 3.80% 4.57% 0.00%
Free cash flow yield 4.11% 7.68% 2.24%

Profitability

Metric ADP CRM Software Application median
Gross margin 46.42% 77.28% 67.03%
Operating margin 26.33% 19.88% 0.00%
Net margin 20.11% 21.99% 0.00%
Free cash flow margin 21.76% 34.49% 5.01%
Return on equity 72.24% 19.38% 0.00%
Return on assets 7.57% 9.33% 0.00%
Return on invested capital 53.39% 8.24% 0.00%

Growth

Metric ADP CRM Software Application median
Revenue growth (TTM) 6.74% 11.23% 12.48%
EPS growth (last fiscal year) 9.62% 22.64% 32.26%
Revenue growth, 5-year CAGR 7.90% 14.34% 14.21%
Net income growth, 5-year CAGR 11.18% 12.86% 0.00%

Health

Metric ADP CRM Software Application median
Debt to equity 0.82 1.02 0.02
Current ratio 1.05 0.84 1.52
Net debt to EBITDA 0.10 0.34 0.08

Dividend

Metric ADP CRM Software Application median
Dividend yield 2.35% 0.72% 0.95%
Payout ratio 0.62 0.16 0.29

Size

Metric ADP CRM Software Application median
Market cap 113.19b 203.07b 357.77m

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