Xunlei (NASDAQ:XNET – Get Free Report) and Adobe (NASDAQ:ADBE – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Risk & Volatility
Xunlei has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Adobe has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Xunlei and Adobe, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xunlei | 0 | 1 | 0 | 0 | 2.00 |
| Adobe | 5 | 21 | 7 | 0 | 2.06 |
Institutional and Insider Ownership
5.1% of Xunlei shares are owned by institutional investors. Comparatively, 81.8% of Adobe shares are owned by institutional investors. 21.7% of Xunlei shares are owned by company insiders. Comparatively, 0.2% of Adobe shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Xunlei and Adobe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xunlei | -15.25% | 0.62% | 0.52% |
| Adobe | 28.05% | 65.65% | 25.54% |
Earnings and Valuation
This table compares Xunlei and Adobe”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xunlei | $462.41 million | 0.67 | $1.05 billion | ($1.24) | -3.90 |
| Adobe | $23.77 billion | 3.81 | $7.13 billion | $17.92 | 12.99 |
Adobe has higher revenue and earnings than Xunlei. Xunlei is trading at a lower price-to-earnings ratio than Adobe, indicating that it is currently the more affordable of the two stocks.
Summary
Adobe beats Xunlei on 13 of the 14 factors compared between the two stocks.
About Xunlei
Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.
About Adobe
Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, students, workers, marketers, educators, enthusiasts, and communicators. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. It also provides consulting, technical support, and learning services. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.
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