Automatic Data Processing (ADP) vs Cadence Design Systems (CDNS)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 7, 2026.
Summary
Cadence Design Systems (CDNS) has outperformed Automatic Data Processing (ADP) over the past year, gaining 3.1% versus a loss of 9.9%. Over five years, CDNS leads with a +128.6% price change compared with +24.5% for ADP. Automatic Data Processing is the larger company by market cap ($104.61 billion vs $98.07 billion), about 1.1 times the size, while Cadence Design Systems is growing revenue faster (+14.1% vs +6.7%).
On valuation, Automatic Data Processing trades at a lower forward P/E (19.7x vs 37.2x for Cadence Design Systems). Automatic Data Processing pays a dividend yielding 2.52%, while Cadence Design Systems does not currently pay one. Cadence Design Systems converts more of its revenue into profit, with a net margin of 20.9% versus 20.1%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | ADP | CDNS |
|---|---|---|
| Share price | $264.00 | $356.12 |
| Market cap | $104.61B | $98.07B |
| 1-day change | +0.63% | -0.95% |
| YTD return | +2.63% | +13.93% |
| 1-year return | -9.88% | +3.08% |
| 5-year return | +24.48% | +128.60% |
| P/E ratio (TTM) | 24.13 | 70.80 |
| Forward P/E | 19.70 | 37.22 |
| EPS (TTM) | $10.94 | $5.03 |
| Dividend yield | 2.52% | 0.00% |
| Annual dividend | $6.64 | $0.00 |
| Revenue (latest FY) | $21.95B | $5.30B |
| Revenue growth (YoY) | +6.74% | +14.12% |
| Net income (latest FY) | $4.41B | $1.11B |
| Gross margin | 46.42% | — |
| Operating margin | — | 28.17% |
| Net margin | 20.11% | 20.94% |
| 52-week high | $292.80 | $416.69 |
| 52-week low | $188.16 | $262.75 |
| Distance from 52-week high | -9.84% | -14.54% |
| Analyst consensus | hold | strong_buy |
| Avg. price target upside | +8.48% | +14.07% |
| Average volume | 2.25M | 2.39M |
| Shares outstanding | 396.25M | 275.39M |
| Employees | 67,000 | 15,445 |
| Sector | Technology | Technology |
| Industry | EDP Services | Computer Software: Prepackaged Software |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- CDNS has outperformed ADP by 13.0 percentage points over the past year.
- Cadence Design Systems trades at a higher earnings multiple (70.8x vs 24.1x trailing P/E).
- Automatic Data Processing offers a meaningfully higher dividend yield (2.52% vs 0.00%).
- Cadence Design Systems grew revenue faster in its latest fiscal year (+14.12% vs +6.74%).
About Automatic Data Processing
ADP stock →Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide.
Technology · EDP Services · 67,000 employees
About Cadence Design Systems
CDNS stock →Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions.
Technology · Computer Software: Prepackaged Software · 15,445 employees
ADP vs CDNS FAQ
Which is bigger, Automatic Data Processing or Cadence Design Systems?
Automatic Data Processing (ADP) is larger, with a market capitalization of $104.61B compared with $98.07B for Cadence Design Systems (CDNS).
Which stock has performed better over the past year, ADP or CDNS?
CDNS returned +3.08% over the past 12 months, compared with -9.88% for ADP (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, ADP or CDNS?
ADP has the lower trailing P/E at 24.1, versus 70.8 for CDNS. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Automatic Data Processing or Cadence Design Systems?
Automatic Data Processing pays a dividend yielding 2.52%, while Cadence Design Systems does not currently pay a regular dividend.
Are Automatic Data Processing and Cadence Design Systems in the same industry?
Both are in the Technology sector, but in different industries: EDP Services for Automatic Data Processing and Computer Software: Prepackaged Software for Cadence Design Systems.