Adobe Systems (NASDAQ: ADBE) and Great Elm Capital Group (NASDAQ:GEC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Valuation and Earnings

This table compares Adobe Systems and Great Elm Capital Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Adobe Systems $6.90 billion 10.66 $2.32 billion $3.19 46.77
Great Elm Capital Group $4.93 million 16.71 -$7.25 million $3.21 1.11

Adobe Systems has higher revenue and earnings than Great Elm Capital Group. Great Elm Capital Group is trading at a lower price-to-earnings ratio than Adobe Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Adobe Systems and Great Elm Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adobe Systems 23.06% 21.40% 12.51%
Great Elm Capital Group N/A -28.99% -21.24%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Adobe Systems and Great Elm Capital Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adobe Systems 1 5 23 0 2.76
Great Elm Capital Group 0 0 0 0 N/A

Adobe Systems presently has a consensus target price of $159.57, suggesting a potential upside of 6.97%. Given Adobe Systems’ higher possible upside, analysts plainly believe Adobe Systems is more favorable than Great Elm Capital Group.

Institutional & Insider Ownership

87.4% of Adobe Systems shares are owned by institutional investors. Comparatively, 39.6% of Great Elm Capital Group shares are owned by institutional investors. 0.4% of Adobe Systems shares are owned by insiders. Comparatively, 6.6% of Great Elm Capital Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Adobe Systems beats Great Elm Capital Group on 8 of the 11 factors compared between the two stocks.

About Adobe Systems

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.

About Great Elm Capital Group

Great Elm Capital Group, Inc., formerly Unwired Planet, Inc., is a holding company. The Company makes investments in businesses and assets in various industries. The Company’s investment for long-term value creation is in the asset management business. The Company continues to explore other opportunities in the investment management business, including other business development companies (BDCs) that trade at a discount to their net asset value. The Company intends to build a diversified investment company consisting of the following three business lines: investment management, financial products and merchant banking. It is embarking on a program of creating bespoke financial products and creating a pipeline of acquisition opportunities. The Company’s subsidiary is Great Elm Capital Corporation (GECC).

Receive News & Ratings for Adobe Systems Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Adobe Systems Incorporated and related companies with Analyst Ratings Network's FREE daily email newsletter.