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Automatic Data Processing, Inc. (ADP) vs Snowflake Inc. (SNOW)

Automatic Data Processing, Inc. and Snowflake Inc. are both Software Application companies. Automatic Data Processing, Inc. is the larger, with a market value of $121.3B against $95.1B — 1.3× the size. Snowflake Inc. has negative trailing earnings, so its P/E is not meaningful; Automatic Data Processing, Inc. trades at 27.1×. Snowflake Inc. grew revenue faster over the last twelve months: 32.0% against 6.50%. Automatic Data Processing, Inc. has the higher net margin (20.3% vs −20.1%) and the higher return on invested capital (54.5% vs −37.0%). Across the 20 metrics below, Automatic Data Processing, Inc. leads on 16 and Snowflake Inc. on 4.

Valuation

Metric ADP SNOW Software Application median
P/E 27.06 n/m 25.90
P/S 5.45 17.41 3.04
P/B 23.82 44.01 2.60
Price to free cash flow 25.51 79.35 17.17
EV/EBITDA 16.33 n/m 15.48
EV/Sales 5.57 17.40 2.89
Earnings yield 3.70% (1.17%) 0.00%
Free cash flow yield 3.92% 1.26% 1.98%

Profitability

Metric ADP SNOW Software Application median
Gross margin 46.60% 67.03% 66.89%
Operating margin 26.54% (22.76%) 0.00%
Net margin 20.33% (20.07%) 0.00%
Free cash flow margin 21.36% 21.94% 5.77%
Return on equity 78.94% (48.17%) 0.00%
Return on assets 7.69% (12.92%) 0.00%
Return on invested capital 54.47% (37.00%) 0.00%

Growth

Metric ADP SNOW Software Application median
Revenue growth (TTM) 6.50% 32.04% 12.27%
EPS growth (last fiscal year) 9.62% (2.33%) 32.11%
Revenue growth, 5-year CAGR 7.90% 51.23% 14.34%
Net income growth, 5-year CAGR 11.18% 0.00% 0.00%

Health

Metric ADP SNOW Software Application median
Debt to equity 0.98 1.06 0.02
Current ratio 1.03 0.94 1.53
Net debt to EBITDA 0.10 1.61 0.09

Dividend

Metric ADP SNOW Software Application median
Dividend yield 2.22% — 1.10%
Payout ratio 0.60 — 0.28

Size

Metric ADP SNOW Software Application median
Market cap 121.25b 95.09b 487.58m

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