Adobe Systems (NASDAQ: ADBE) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it contrast to its peers? We will compare Adobe Systems to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Adobe Systems and its peers’ 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%
Adobe Systems Competitors -62.15% -91.89% -16.29%

Analyst Ratings

This is a breakdown of recent ratings for Adobe Systems and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adobe Systems 1 5 23 0 2.76
Adobe Systems Competitors 175 1500 2840 96 2.62

Adobe Systems presently has a consensus price target of $159.57, indicating a potential upside of 6.20%. As a group, “Application Software” companies have a potential upside of 5.15%. Given Adobe Systems’ stronger consensus rating and higher possible upside, equities analysts plainly believe Adobe Systems is more favorable than its peers.

Institutional & Insider Ownership

87.4% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Adobe Systems and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Adobe Systems $6.90 billion $2.32 billion 47.10
Adobe Systems Competitors $761.43 million $137.66 million -11.98

Adobe Systems has higher revenue and earnings than its peers. Adobe Systems is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Adobe Systems has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Adobe Systems’ peers have a beta of 1.60, meaning that their average stock price is 60% more volatile than the S&P 500.

Summary

Adobe Systems beats its peers on 10 of the 13 factors compared.

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.

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.