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 187.3 and CRM reads 17.3; on return on equity, ADP reads 73.2% and CRM reads 14.9%. The rest of the comparable metrics sit closer together. On valuation, today's ADP price has a different growth bar priced in than CRM (+9.8% implied for ADP vs +19.0% for CRM); the higher figure is the steeper assumption to clear, not a better or worse stock. 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 | $270.82 | $229.11 |
| Market cap | $109.0B | $188.1B |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | +9.8% | +19.0% |
| P/E | 24.8 | 20.9 |
| P/B | 18.07 | 4.90 |
| P/S | 4.97 | 4.28 |
| EV/EBITDA | 187.3 | 17.3 |
| Revenue growth | +6.7% | +11.2% |
| Gross margin | — | 76.7% |
| Operating margin | — | 20.6% |
| Net margin | 20.1% | 13.1% |
| Return on equity | 73.2% | 14.9% |
| Return on assets | 7.0% | 5.2% |
| Return on invested capital | — | 8.7% |
| FCF yield | 4.8% | 8.1% |
| Dividend yield | 2.5% | — |
| Debt / equity | 0.82 | 1.02 |
| Current ratio | 1.05 | 0.84 |
| Altman Z (solvency) | 2.14 | 2.35 |
| Piotroski F (quality) | 6 / 9 | 5 / 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.