AUTOMATIC DATA PROCESSING INC vs Salesforce, Inc., two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where ADP and CRM diverge most: on ev/ebitda, ADP reads 167.9 and CRM reads 13.8; on p/b, ADP reads 15.33 and CRM reads 4.16. The rest of the comparable metrics sit closer together. On valuation, today's ADP price has a different growth bar priced in than CRM (+7.7% implied for ADP vs +6.3% for CRM); the higher figure is the steeper assumption to clear, not a better or worse stock. What ADP's price implies is a bet that sits within the historical range (whole-company basis). What CRM's price implies is a bet that sits within the historical range (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | ADP | CRM |
|---|---|---|
| Price | $241.91 | $163.36 |
| Market cap | $97.4B | $142.3B |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | +7.7% | +6.3% |
| P/E | 22.6 | 18.9 |
| P/B | 15.33 | 4.16 |
| P/S | 4.51 | 3.32 |
| EV/EBITDA | 167.9 | 13.8 |
| Revenue growth | +6.9% | +10.9% |
| Gross margin | — | 76.9% |
| Operating margin | — | 21.1% |
| Net margin | 20.1% | 15.6% |
| Return on equity | 68.4% | 19.5% |
| Return on assets | 6.7% | 6.2% |
| Return on invested capital | — | 9.2% |
| FCF yield | 5.6% | 10.3% |
| Dividend yield | 2.5% | — |
| Debt / equity | 0.63 | 1.15 |
| Current ratio | 1.04 | 0.79 |
| Altman Z (solvency) | 1.96 | 1.90 |
| Piotroski F (quality) | 7 / 9 | 6 / 9 |
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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.