CommVault Systems (NASDAQ:CVLT – Get Free Report) and Adobe (NASDAQ:ADBE – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Insider & Institutional Ownership
93.5% of CommVault Systems shares are owned by institutional investors. Comparatively, 81.8% of Adobe shares are owned by institutional investors. 1.0% of CommVault Systems shares are owned by company insiders. Comparatively, 0.2% of Adobe shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares CommVault Systems and Adobe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CommVault Systems | 7.32% | 31.53% | 7.16% |
| Adobe | 30.01% | 57.54% | 24.79% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CommVault Systems | $1.10 billion | 4.99 | $76.11 million | $1.78 | 69.64 |
| Adobe | $23.18 billion | 5.86 | $5.56 billion | $16.05 | 20.23 |
Adobe has higher revenue and earnings than CommVault Systems. Adobe is trading at a lower price-to-earnings ratio than CommVault Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CommVault Systems has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Adobe has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for CommVault Systems and Adobe, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CommVault Systems | 1 | 3 | 9 | 1 | 2.71 |
| Adobe | 3 | 12 | 13 | 1 | 2.41 |
CommVault Systems presently has a consensus price target of $195.10, suggesting a potential upside of 57.38%. Adobe has a consensus price target of $433.41, suggesting a potential upside of 33.46%. Given CommVault Systems’ stronger consensus rating and higher possible upside, analysts clearly believe CommVault Systems is more favorable than Adobe.
Summary
Adobe beats CommVault Systems on 9 of the 14 factors compared between the two stocks.
About CommVault Systems
Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.
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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