Adobe vs Microsoft
ADBE and MSFT side by side, both in computer programming, data processing, and other computer related services. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.
How ADBE and MSFT compare
Microsoft is the larger company, worth 40 times as much as Adobe ($3.9T against $97.4B).
On earnings, Adobe is cheaper: it trades at 14.0× trailing earnings, against 29.1× for Microsoft.
Microsoft grew revenue faster over the last twelve months (17.8% versus 12.0% for Adobe).
Microsoft keeps more of each dollar of sales as profit, with a net margin of 40.3% compared with 28.0% at Adobe.
Microsoft pays a dividend yielding 0.70%; Adobe does not pay one.
Microsoft scores higher on the StockData Score (22 against 20 for Adobe), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.
Key numbers
A dot marks the better figure where higher or lower is clearly better.
| Metric | ADBE | MSFT |
|---|---|---|
| Size and price | ||
| Market cap | $97.4B | $3.9T |
| Share price | $250.23 | $521.91 |
| Change, 1 year | −25.9% | −3.6% |
| Change, 5 years | −62.2% | 55.3% |
| Beta (5Y) | 1.37 | 1.14 |
| Employees | 31K | 223K |
| StockData Score | ||
| Total score | 20 | 22 (better) |
| Valuation score | 5 (better) | 2 |
| Growth score | 5 (better) | 4 |
| Performance score | 5 | 6 (better) |
| Health score | 5 | 6 (better) |
| Dividend score | 0 | 4 (better) |
| Valuation | ||
| P/E | 14.0× (better) | 29.1× |
| P/S | 3.8× (better) | 11.7× |
| P/B | 8.3× (better) | 8.8× |
| EV/EBITDA | 9.3× (better) | 24.7× |
| P/FCF | 9.2× (better) | 57.9× |
| PEG | 0.77 (better) | 1.27 |
| FCF yield | 10.9% (better) | 1.7% |
| Fair value | $566.47 | $510.33 |
| Margin of safety | 55.8% (better) | −2.3% |
| Growth | ||
| Revenue growth (TTM) | 12.0% | 17.8% (better) |
| Revenue growth, 5Y average | 13.1% | 14.6% (better) |
| Net income growth (TTM) | 4.7% | 31.3% (better) |
| EPS growth (TTM) | 11.6% | 31.6% (better) |
| EPS growth, 5Y average | 9.0% | 17.4% (better) |
| Profitability | ||
| Gross margin | 89.3% (better) | 67.9% |
| Operating margin | 35.7% | 46.8% (better) |
| Net margin | 28.0% | 40.3% (better) |
| FCF margin | 40.8% (better) | 20.2% |
| Return on equity | 61.9% (better) | 34.0% |
| Return on invested capital | 107% (better) | 35.9% |
| Financial health | ||
| Debt / equity | 0.14 | 0.09 (better) |
| Net debt / EBITDA | −0.40 | −0.24 |
| Interest coverage | 35.7× | 50.9× (better) |
| Current ratio | 0.77 | 1.23 (better) |
| Altman Z-score | 7.35 | 9.14 (better) |
| Piotroski F-score | 8 (better) | 6 |
| Dividends and buybacks | ||
| Dividend yield | – | 0.70% |
| Payout ratio | – | 19.8% |
| Years of dividend growth | – | 16 |
| Dividend growth, 5Y average | – | 10.2% |
| Buyback yield | 9.5% (better) | 0.52% |
| Shareholder yield | 9.5% (better) | 1.2% |
| Ownership | ||
| Held by institutions | 85.7% | 74.1% |
| Held by insiders | 0.17% | 0.04% |
| Insider net buying, 12 months | −$48.8M (better) | −$113M |
| Superinvestors holding | 4 | 21 (better) |
| Short interest, % of float | 4.6% | 0.82% |
Go deeper
- ADBE stock overview
- ADBE income statement
- ADBE valuation and score
- MSFT stock overview
- MSFT income statement
- MSFT valuation and score
Other comparisons
For information only, not investment advice. Check the source filings before relying on any figure.