MetaCap

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

ADP-9.88%CDNS+3.08%
+23%-8%-38%
Oct 7, 20251 yearOct 7, 2026
ADP+28.60%CDNS+137.22%
+166%+74%-19%
Oct 4, 20215 yearsOct 5, 2026

Percent change in share price from the first common trading day shown; excludes dividends.

Head-to-head

ADP versus CDNS key metrics
MetricADPCDNS
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)24.1370.80
Forward P/E19.7037.22
EPS (TTM)$10.94$5.03
Dividend yield2.52%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 margin46.42%—
Operating margin—28.17%
Net margin20.11%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 consensusholdstrong_buy
Avg. price target upside+8.48%+14.07%
Average volume2.25M2.39M
Shares outstanding396.25M275.39M
Employees67,00015,445
SectorTechnologyTechnology
IndustryEDP ServicesComputer 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.

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