AUTOMATIC DATA PROCESSING INC vs CADENCE DESIGN SYSTEMS, INC., two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where ADP and CDNS diverge most: on debt / equity, ADP reads 0.63 and CDNS reads 0.00; on p/s, ADP reads 4.51 and CDNS reads 19.02. The rest of the comparable metrics sit closer together. What ADP's price implies is a bet that sits within the historical range (whole-company basis). What CDNS's price implies is a demanding bet versus history and the cohort (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | ADP | CDNS |
|---|---|---|
| Price | $241.91 | $384.25 |
| Market cap | $97.4B | $105.2B |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | +7.7% | — |
| P/E | 22.6 | 89.6 |
| P/B | 15.33 | 16.03 |
| P/S | 4.51 | 19.02 |
| EV/EBITDA | 167.9 | 63.0 |
| Revenue growth | +6.9% | +13.8% |
| Operating margin | — | 29.3% |
| Net margin | 20.1% | 21.2% |
| Return on equity | 68.4% | 17.9% |
| Return on assets | 6.7% | 9.7% |
| Return on invested capital | — | 18.7% |
| FCF yield | 5.6% | 1.4% |
| Dividend yield | 2.5% | — |
| Debt / equity | 0.63 | 0.00 |
| Current ratio | 1.04 | 1.47 |
| Altman Z (solvency) | 1.96 | 7.54 |
| Piotroski F (quality) | 7 / 9 | 6 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
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.