Automatic Data Processing, Inc. (ADP) vs Cadence Design Systems, Inc. (CDNS)
ADP leads on 9 of 16 compared metrics.
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 July 20, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
ADP
Automatic Data Processing, Inc.
$255.24TechnologyDelayed quote: Jul 20, 2026, 4:00 PM EDT
CDNS
Cadence Design Systems, Inc.
$329.93TechnologyDelayed quote: Jul 20, 2026, 4:00 PM EDT
Total return — ADP vs CDNS
growth of $100 · dividends reinvested · last 30yADP +2970.5%CDNS +2225.5%ADP compounded faster
ADP CDNS
ADP vs CDNS: by the numbers
- •ADP is the larger company ($102.03B vs $91.00B market cap).
- •ADP trades at the lower earnings multiple (23.79 vs 76.91 P/E).
- •CDNS converts more revenue to profit (21.18% vs 20.12% net margin).
- •CDNS grew revenue faster over the past five years (14.78% vs 8.08% CAGR).
- •ADP pays a dividend (2.60% yield) while CDNS does not currently pay one.
Which is better, ADP or CDNS?
Metric tally: ADP 9 · CDNS 7It depends on what you're optimizing for:
ValueADP(lower P/E)
GrowthCDNS(faster 5Y revenue CAGR)
QualityADP(higher ROIC)
Metrics side by side
Valuation
| Metric | ADP | CDNS |
|---|---|---|
| P/E ratio | 23.79● | 76.91 |
| Forward P/E | 23.05● | 41.56 |
| P/S ratio | 4.75● | 16.34 |
| P/B ratio | 16.17 | 13.76● |
| PEG ratio | 3.20● | 14.86 |
| EV / EBITDA | 22.38● | 46.31 |
| FCF yield | 5.02%● | 1.58% |
Profitability
| Metric | ADP | CDNS |
|---|---|---|
| Gross margin | 47.48% | 88.85%● |
| Operating margin | 19.20% | 31.11%● |
| Net margin | 20.12% | 21.18%● |
| ROE | 68.43%● | 17.85% |
| ROIC | 24.66%● | 14.11% |
Dividends
| Metric | ADP | CDNS |
|---|---|---|
| Dividend yield | 2.60% | — |
| Payout ratio | 66.27% | — |
Growth (annualized)
| Metric | ADP | CDNS |
|---|---|---|
| Revenue CAGR (5Y) | 8.08% | 14.78%● |
| EPS CAGR (5Y) | 11.83% | 13.62%● |
| FCF CAGR (5Y) | 14.52%● | 11.44% |
| Total return CAGR (5Y) | 6.93% | 18.74%● |
Frequently asked
- Which is better, ADP or CDNS?
- It depends on your goal. value: ADP (lower P/E); growth: CDNS (faster 5Y revenue CAGR); quality: ADP (higher ROIC). Across all compared metrics, ADP leads 9 to 7.
- Is ADP or CDNS cheaper?
- On trailing earnings, ADP is cheaper: ADP trades at a 23.79 P/E and CDNS at 76.91.
- Which has grown faster, ADP or CDNS?
- Over the past five years, CDNS grew revenue faster — ADP at a 8.08% CAGR versus CDNS at 14.78%.
- Does ADP or CDNS pay a bigger dividend?
- ADP pays a dividend (2.60% yield) while CDNS does not currently pay one.
- Is ADP or CDNS more profitable?
- CDNS runs the higher net margin — ADP at 20.12% versus CDNS at 21.18%.
- Which has been the better investment, ADP or CDNS?
- Over the past 10-year, CDNS delivered the higher annualized total return — ADP at 12.76% versus CDNS at 28.88%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Automatic Data Processing P/E ratioCadence Design Systems P/E ratioAutomatic Data Processing dividend yieldCadence Design Systems dividend yieldAutomatic Data Processing ROECadence Design Systems ROEAutomatic Data Processing operating marginCadence Design Systems operating marginAutomatic Data Processing revenue growthCadence Design Systems revenue growthAutomatic Data Processing free cash flowCadence Design Systems free cash flow
Automatic Data Processing & Cadence Design Systems appear in these rankings
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 July 20, 2026.