ADBE vs. EA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADBE and EA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ADBE’s market capitalization of 161.66 billion USD is substantially larger than EA’s 38.96 billion USD, indicating a significant difference in their market valuations.
ADBE’s beta of 1.54 points to significantly higher volatility compared to EA (beta: 0.71), suggesting ADBE has greater potential for both gains and losses relative to market movements.
| Symbol | ADBE | EA |
|---|---|---|
| Company Name | Adobe Inc. | Electronic Arts Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Electronic Gaming & Multimedia |
| CEO | Shantanu Narayen | Andrew Wilson |
| Price | 379.31 USD | 155.37 USD |
| Market Cap | 161.66 billion USD | 38.96 billion USD |
| Beta | 1.54 | 0.71 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | August 13, 1986 | September 20, 1989 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADBE and EA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ADBE
51.65%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
In the upper quartile for the Software - Infrastructure industry, ADBE’s Return on Equity of 51.65% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
EA
15.68%
Electronic Gaming & Multimedia Industry
- Max
- 22.45%
- Q3
- 13.61%
- Median
- -5.53%
- Q1
- -70.13%
- Min
- -121.78%
In the upper quartile for the Electronic Gaming & Multimedia industry, EA’s Return on Equity of 15.68% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ADBE
35.47%
Software - Infrastructure Industry
- Max
- 39.31%
- Q3
- 11.97%
- Median
- 1.67%
- Q1
- -7.10%
- Min
- -34.29%
In the upper quartile for the Software - Infrastructure industry, ADBE’s Return on Invested Capital of 35.47% signifies a highly effective use of its capital to generate profits when compared to its peers.
EA
11.36%
Electronic Gaming & Multimedia Industry
- Max
- 17.62%
- Q3
- 11.24%
- Median
- 1.98%
- Q1
- -22.67%
- Min
- -64.64%
In the upper quartile for the Electronic Gaming & Multimedia industry, EA’s Return on Invested Capital of 11.36% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ADBE
30.39%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
A Net Profit Margin of 30.39% places ADBE in the upper quartile for the Software - Infrastructure industry, signifying strong profitability and more effective cost management than most of its peers.
EA
15.03%
Electronic Gaming & Multimedia Industry
- Max
- 28.20%
- Q3
- 16.08%
- Median
- 10.20%
- Q1
- -7.35%
- Min
- -22.94%
EA’s Net Profit Margin of 15.03% is aligned with the median group of its peers in the Electronic Gaming & Multimedia industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ADBE
36.37%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
An Operating Profit Margin of 36.37% places ADBE in the upper quartile for the Software - Infrastructure industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
EA
20.45%
Electronic Gaming & Multimedia Industry
- Max
- 28.10%
- Q3
- 17.15%
- Median
- 5.89%
- Q1
- -19.43%
- Min
- -26.48%
An Operating Profit Margin of 20.45% places EA in the upper quartile for the Electronic Gaming & Multimedia industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ADBE | EA |
|---|---|---|
| Return on Equity (TTM) | 51.65% | 15.68% |
| Return on Assets (TTM) | 24.44% | 9.06% |
| Return on Invested Capital (TTM) | 35.47% | 11.36% |
| Net Profit Margin (TTM) | 30.39% | 15.03% |
| Operating Profit Margin (TTM) | 36.37% | 20.45% |
| Gross Profit Margin (TTM) | 89.25% | 79.08% |
Financial Strength
Current Ratio
ADBE
0.99
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
ADBE’s Current Ratio of 0.99 falls into the lower quartile for the Software - Infrastructure industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
EA
0.95
Electronic Gaming & Multimedia Industry
- Max
- 3.22
- Q3
- 2.77
- Median
- 1.19
- Q1
- 0.82
- Min
- 0.01
EA’s Current Ratio of 0.95 aligns with the median group of the Electronic Gaming & Multimedia industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ADBE
0.03
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
Falling into the lower quartile for the Software - Infrastructure industry, ADBE’s Debt-to-Equity Ratio of 0.03 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
EA
0.31
Electronic Gaming & Multimedia Industry
- Max
- 1.92
- Q3
- 1.14
- Median
- 0.31
- Q1
- 0.17
- Min
- 0.09
EA’s Debt-to-Equity Ratio of 0.31 is typical for the Electronic Gaming & Multimedia industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ADBE
-283.48
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
ADBE has a negative Interest Coverage Ratio of -283.48. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
EA
20.61
Electronic Gaming & Multimedia Industry
- Max
- 20.61
- Q3
- 4.69
- Median
- -1.31
- Q1
- -20.23
- Min
- -25.09
EA’s Interest Coverage Ratio of 20.61 is in the upper quartile for the Electronic Gaming & Multimedia industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADBE | EA |
|---|---|---|
| Current Ratio (TTM) | 0.99 | 0.95 |
| Quick Ratio (TTM) | 0.99 | 0.95 |
| Debt-to-Equity Ratio (TTM) | 0.03 | 0.31 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.16 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.52 | -0.10 |
| Interest Coverage Ratio (TTM) | -283.48 | 20.61 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADBE and EA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ADBE
0.00%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ADBE currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
EA
0.49%
Electronic Gaming & Multimedia Industry
- Max
- 8.44%
- Q3
- 0.36%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.49%, EA offers a more attractive income stream than most of its peers in the Electronic Gaming & Multimedia industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ADBE
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ADBE has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
EA
17.75%
Electronic Gaming & Multimedia Industry
- Max
- 106.44%
- Q3
- 13.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
EA’s Dividend Payout Ratio of 17.75% is in the upper quartile for the Electronic Gaming & Multimedia industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ADBE | EA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.49% |
| Dividend Payout Ratio (TTM) | 0.00% | 17.75% |
Valuation
Price-to-Earnings Ratio
ADBE
23.86
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
ADBE’s P/E Ratio of 23.86 is within the middle range for the Software - Infrastructure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
EA
36.31
Electronic Gaming & Multimedia Industry
- Max
- 36.87
- Q3
- 20.95
- Median
- 12.73
- Q1
- 7.31
- Min
- 3.67
A P/E Ratio of 36.31 places EA in the upper quartile for the Electronic Gaming & Multimedia industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
ADBE
2.57
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
ADBE’s Forward PEG Ratio of 2.57 is within the middle range of its peers in the Software - Infrastructure industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
EA
1.95
Electronic Gaming & Multimedia Industry
- Max
- 2.97
- Q3
- 2.24
- Median
- 1.87
- Q1
- 1.76
- Min
- 1.76
EA’s Forward PEG Ratio of 1.95 is within the middle range of its peers in the Electronic Gaming & Multimedia industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ADBE
7.15
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
ADBE’s P/S Ratio of 7.15 aligns with the market consensus for the Software - Infrastructure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
EA
5.23
Electronic Gaming & Multimedia Industry
- Max
- 7.60
- Q3
- 6.29
- Median
- 3.76
- Q1
- 1.02
- Min
- 0.66
EA’s P/S Ratio of 5.23 aligns with the market consensus for the Electronic Gaming & Multimedia industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ADBE
14.31
Software - Infrastructure Industry
- Max
- 19.94
- Q3
- 10.91
- Median
- 6.33
- Q1
- 2.95
- Min
- 0.51
The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.
EA
6.37
Electronic Gaming & Multimedia Industry
- Max
- 6.47
- Q3
- 6.47
- Median
- 4.48
- Q1
- 1.29
- Min
- 0.36
The P/B Ratio is often not a primary valuation metric for the Electronic Gaming & Multimedia industry.
Valuation at a Glance
| Symbol | ADBE | EA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 23.86 | 36.31 |
| Forward PEG Ratio (TTM) | 2.57 | 1.95 |
| Price-to-Sales Ratio (P/S, TTM) | 7.15 | 5.23 |
| Price-to-Book Ratio (P/B, TTM) | 14.31 | 6.37 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.13 | 20.97 |
| EV-to-EBITDA (TTM) | 18.02 | 20.86 |
| EV-to-Sales (TTM) | 6.95 | 5.20 |