Which has the lower trailing P/E, ADP or CDNS?

ADP has the lower trailing P/E: ADP trades at 25.35 and CDNS at 58.19. P/E is one valuation measure and does not by itself establish which business is cheaper.

Which has grown faster, ADP or CDNS?

Over the past five years, CDNS grew revenue faster — ADP at a 7.90% CAGR versus CDNS at 15.04%.

Does ADP or CDNS pay a bigger dividend?

ADP pays a dividend (2.39% yield), while CDNS has no payments in the available dividend history.

Is ADP or CDNS more profitable?

CDNS runs the higher net margin — ADP at 20.11% versus CDNS at 23.61%.

How have ADP and CDNS total returns compared?

Over the past 10 years, ADP delivered 14.35% and CDNS delivered 27.42% annualized total return. Past performance doesn't predict future results.

Automatic Data Processing, Inc. (ADP) vs Cadence Design Systems, Inc. (CDNS)

A side-by-side comparison of Automatic Data Processing, Inc. and Cadence Design Systems, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 8, 2026. Differences are shown without an overall score or investment verdict.

ADP

Automatic Data Processing, Inc.

$107.16B

$268.08TechnologyDelayed quote: Sep 8, 2026, 11:45 AM EDT

CDNS

Cadence Design Systems, Inc.

$80.42B

$292.03TechnologyDelayed quote: Sep 8, 2026, 11:45 AM EDT

Total return — ADP vs CDNS

growth of $100 · dividends reinvested · last 10y

ADP +290.0% (+14.6%/yr)CDNS +1057.4% (+27.7%/yr)CDNS compounded faster over this window

ADP CDNS

ADP vs CDNS: by the numbers

•ADP is the larger company ($107.16B vs $80.42B market cap).
•ADP trades at the lower trailing earnings multiple (25.35 vs 58.19 P/E), one valuation lens rather than an overall verdict.
•CDNS converts more revenue to profit (23.61% vs 20.11% net margin).
•CDNS grew revenue faster over the past five years (15.04% vs 7.90% CAGR).
•ADP pays a dividend (2.39% yield), while CDNS has no payments in the available dividend history.

Metrics side by side

Valuation

Metric	ADP	CDNS
P/E ratio	25.35	58.19
Forward P/E	25.07	35.95
P/S ratio	5.05	13.79
P/B ratio	18.39	11.73
EV / EBITDA	24.50	38.35
FCF yield	4.49%	2.09%

Profitability

Metric	ADP	CDNS
Gross margin	48.19%	88.50%
Operating margin	18.58%	30.83%
Net margin	20.11%	23.61%
ROE	73.18%	20.09%
ROIC	23.85%	13.29%

Dividends

Metric	ADP	CDNS
Dividend yield	2.39%	N/A
Payout ratio	60.64%	N/A

Growth (annualized)

Metric	ADP	CDNS
Revenue CAGR (5Y)	7.90%	15.04%
EPS CAGR (5Y)	12.46%	13.62%
FCF CAGR (5Y)	13.99%	15.03%
Total return CAGR (5Y)	8.35%	12.05%

Frequently asked

Which has the lower trailing P/E, ADP or CDNS?: ADP has the lower trailing P/E: ADP trades at 25.35 and CDNS at 58.19. P/E is one valuation measure and does not by itself establish which business is cheaper.
Which has grown faster, ADP or CDNS?: Over the past five years, CDNS grew revenue faster — ADP at a 7.90% CAGR versus CDNS at 15.04%.
Does ADP or CDNS pay a bigger dividend?: ADP pays a dividend (2.39% yield), while CDNS has no payments in the available dividend history.
Is ADP or CDNS more profitable?: CDNS runs the higher net margin — ADP at 20.11% versus CDNS at 23.61%.
How have ADP and CDNS total returns compared?: Over the past 10 years, ADP delivered 14.35% and CDNS delivered 27.42% annualized total return. Past performance doesn't predict future results.

Go deeper

Full ADP analysis Full CDNS analysis Interactive comparison tool

Dig into the metrics

Automatic Data Processing P/E ratio Cadence Design Systems P/E ratio Automatic Data Processing dividend yield Automatic Data Processing ROE Cadence Design Systems ROE Automatic Data Processing operating margin Cadence Design Systems operating margin Automatic Data Processing revenue growth Cadence Design Systems revenue growth Automatic Data Processing free cash flow Cadence Design Systems free cash flow

Automatic Data Processing & Cadence Design Systems appear in these rankings

Highest Dividend Yield Stocks 25+ Year Dividend Growers Fastest Revenue Growth Stocks Highest ROE Stocks

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 8, 2026.