AUTOMATIC DATA PROCESSING INC vs ALPHABET INC., two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where ADP and GOOGL diverge most: on dividend yield, ADP reads 2.5% and GOOGL reads 0.2%; on ev/ebitda, ADP reads 167.9 and GOOGL reads 29.9. 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 GOOGL's price implies is a demanding bet versus history and the cohort (segment-resolved basis). The bull and bear cases for each are in their full reports below.
| Metric | ADP | GOOGL |
|---|---|---|
| Price | $241.91 | $357.17 |
| Market cap | $97.4B | $4.37T |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | +7.7% | — |
| P/E | 22.6 | 27.2 |
| P/B | 15.33 | 9.13 |
| P/S | 4.51 | 10.35 |
| EV/EBITDA | 167.9 | 29.9 |
| Revenue growth | +6.9% | +17.4% |
| Operating margin | — | 36.1% |
| Net margin | 20.1% | 27.1% |
| Return on equity | 68.4% | 23.9% |
| Return on assets | 6.7% | 16.3% |
| Return on invested capital | — | 20.0% |
| FCF yield | 5.6% | 1.5% |
| Dividend yield | 2.5% | 0.2% |
| Debt / equity | 0.63 | 0.17 |
| Current ratio | 1.04 | 1.92 |
| Altman Z (solvency) | 1.96 | 7.72 |
| Piotroski F (quality) | 7 / 9 | 4 / 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.