AUTOMATIC DATA PROCESSING INC vs Oracle Corporation, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where ADP and ORCL diverge most: on fcf yield, ADP reads 5.6% and ORCL reads -5.8%; on ev/ebitda, ADP reads 167.9 and ORCL reads 17.6. The rest of the comparable metrics sit closer together. On valuation, today's ADP price has a different growth bar priced in than ORCL (+7.7% implied for ADP vs +14.1% for ORCL); 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 ORCL'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 | ORCL |
|---|---|---|
| Price | $241.91 | $140.68 |
| Market cap | $97.4B | $409.7B |
| Sector | Software | Software |
| Stage | Mature | Growth |
| Implied growth (priced in) | +7.7% | +14.1% |
| P/E | 22.6 | 24.1 |
| P/B | 15.33 | 9.51 |
| P/S | 4.51 | 6.08 |
| EV/EBITDA | 167.9 | 17.6 |
| Revenue growth | +6.9% | +17.2% |
| Operating margin | — | 32.0% |
| Net margin | 20.1% | 21.6% |
| Return on equity | 68.4% | 33.8% |
| Return on assets | 6.7% | 5.5% |
| Return on invested capital | — | 32.4% |
| FCF yield | 5.6% | -5.8% |
| Dividend yield | 2.5% | 1.4% |
| Debt / equity | 0.63 | 0.17 |
| Current ratio | 1.04 | 1.12 |
| Altman Z (solvency) | 1.96 | 6.33 |
| Piotroski F (quality) | 7 / 9 | 7 / 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.