Automatic Data Processing, Inc. (ADP) vs Intuit Inc. (INTU)

Automatic Data Processing, Inc. and Intuit Inc. are both Software Application companies. Automatic Data Processing, Inc. is the larger, with a market value of $104.2B against $73.6B — 1.4× the size. Intuit Inc. trades at the lower P/E: 16.7× against 24.0×. Intuit Inc. grew revenue faster over the last twelve months: 13.9% against 6.74%. Intuit Inc. has the higher net margin (21.3% vs 20.1%) and the lower return on invested capital (20.2% vs 53.4%). Both pay a dividend; Automatic Data Processing, Inc. yields more (1.96% vs 0.52%). Across the 23 metrics below, Intuit Inc. leads on 20 and Automatic Data Processing, Inc. on 3.

Valuation

Metric ADP INTU Software Application median
P/E 24.04 16.68 24.79
P/S 4.83 3.55 2.67
P/B 17.59 4.01 3.01
Price to free cash flow 22.21 8.83 16.59
EV/EBITDA 14.42 11.21 14.40
EV/Sales 4.91 3.52 2.62
Earnings yield 4.16% 5.99% 0.00%
Free cash flow yield 4.50% 11.32% 1.91%

Profitability

Metric ADP INTU Software Application median
Gross margin 46.42% 80.17% 67.03%
Operating margin 26.33% 27.43% 0.00%
Net margin 20.11% 21.29% 0.00%
Free cash flow margin 21.76% 40.18% 4.32%
Return on equity 72.24% 23.60% 0.00%
Return on assets 7.57% 12.38% 0.00%
Return on invested capital 53.39% 20.19% 0.00%

Growth

Metric ADP INTU Software Application median
Revenue growth (TTM) 6.74% 13.90% 12.40%
EPS growth (last fiscal year) 9.62% 20.41% —
Revenue growth, 5-year CAGR 7.90% 17.36% 13.72%
Net income growth, 5-year CAGR 11.18% 17.23% 0.00%

Health

Metric ADP INTU Software Application median
Debt to equity 0.82 0.34 0.02
Current ratio 1.05 1.51 1.55
Net debt to EBITDA 0.10 (0.12) 0.06

Dividend

Metric ADP INTU Software Application median
Dividend yield 1.96% 0.52% 1.25%
Payout ratio 0.58 0.37 0.00

Size

Metric ADP INTU Software Application median
Market cap 104.23b 73.58b 396.11m

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