ADOBE INC. vs AUTOMATIC DATA PROCESSING INC, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where ADBE and ADP diverge most: on ev/ebitda, ADBE reads 9.9 and ADP reads 231.2; on implied growth (priced in), ADBE reads +1.8% and ADP reads +12.7%. The rest of the comparable metrics sit closer together. On valuation, today's ADBE price has a different growth bar priced in than ADP (+1.8% implied for ADBE vs +12.7% for ADP); the higher figure is the steeper assumption to clear, not a better or worse stock. What ADBE's price implies is a bet that sits within the historical range (whole-company basis). What ADP's price implies is a somewhat stretched bet versus history (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | ADBE | ADP |
|---|---|---|
| Price | $225.11 | $250.09 |
| Market cap | $90.6B | $100.7B |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | +1.8% | +12.7% |
| P/E | 12.9 | 23.3 |
| P/B | 7.87 | 15.85 |
| P/S | 3.60 | 4.66 |
| EV/EBITDA | 9.9 | 231.2 |
| Revenue growth | +11.5% | +6.9% |
| Gross margin | 89.2% | — |
| Operating margin | 33.8% | — |
| Net margin | 28.7% | 20.1% |
| Return on equity | 62.8% | 68.4% |
| Return on assets | 24.1% | 6.7% |
| Return on invested capital | 38.3% | — |
| FCF yield | 11.3% | 5.4% |
| Dividend yield | — | 2.4% |
| Debt / equity | 0.58 | 0.63 |
| Current ratio | 0.75 | 1.04 |
| Altman Z (solvency) | 6.20 | 1.99 |
| Piotroski F (quality) | 7 / 9 | 7 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.