Adobe Systems (NASDAQ: ADBE) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it compare to its rivals? We will compare Adobe Systems to related businesses based on the strength of its risk, dividends, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Insider & Institutional Ownership
87.5% of Adobe Systems shares are owned by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are owned by institutional investors. 0.4% of Adobe Systems shares are owned by insiders. Comparatively, 15.7% of shares of all “Application Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for Adobe Systems and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Adobe Systems Competitors||179||1508||2859||96||2.62|
Adobe Systems currently has a consensus price target of $159.57, suggesting a potential upside of 3.85%. As a group, “Application Software” companies have a potential upside of 5.01%. Given Adobe Systems’ rivals higher probable upside, analysts plainly believe Adobe Systems has less favorable growth aspects than its rivals.
This table compares Adobe Systems and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Adobe Systems Competitors||-61.75%||-91.30%||-15.94%|
Risk and Volatility
Adobe Systems has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Adobe Systems’ rivals have a beta of 1.60, suggesting that their average share price is 60% more volatile than the S&P 500.
Earnings & Valuation
This table compares Adobe Systems and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Adobe Systems||$6.90 billion||$2.32 billion||48.17|
|Adobe Systems Competitors||$761.46 million||$137.65 million||-12.25|
Adobe Systems has higher revenue and earnings than its rivals. Adobe Systems is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Adobe Systems beats its rivals on 9 of the 13 factors compared.
Adobe Systems Company Profile
Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences. It operates through three segments: Digital Media, Digital Marketing, and Print and Publishing. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content. Its Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Its Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to its legacy type and original equipment manufacturer (OEM) printing businesses.
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