AUTOMATIC DATA PROCESSING INC vs CLOUDFLARE, INC., two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where ADP and NET diverge most: on net margin, ADP reads 20.1% and NET reads -3.7%; on return on equity, ADP reads 68.4% and NET reads -5.7%. The rest of the comparable metrics sit closer together. What ADP's price implies is a somewhat stretched bet versus history (whole-company basis). What NET's price implies is a somewhat stretched bet versus history (revenue-multiple basis). The bull and bear cases for each are in their full reports below.
| Metric | ADP | NET |
|---|---|---|
| Price | $250.09 | $262.22 |
| Market cap | $100.7B | $92.5B |
| Sector | Software | Software |
| Stage | Mature | Growth |
| Implied growth (priced in) | +12.7% | — |
| P/E | 23.3 | — |
| P/B | 15.85 | 60.57 |
| P/S | 4.66 | 39.71 |
| EV/EBITDA | 231.2 | 4234.7 |
| Revenue growth | +6.9% | +31.4% |
| Gross margin | — | 71.2% |
| Operating margin | — | -9.7% |
| Net margin | 20.1% | -3.7% |
| Return on equity | 68.4% | -5.7% |
| Return on assets | 6.7% | -1.4% |
| Return on invested capital | — | -4.1% |
| FCF yield | 5.4% | 0.3% |
| Dividend yield | 2.4% | — |
| Debt / equity | 0.63 | 1.29 |
| Current ratio | 1.04 | 1.96 |
| Altman Z (solvency) | 1.99 | 6.51 |
| Piotroski F (quality) | 7 / 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.