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ADBE vs. ERIC: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ADBE and ERIC, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

ADBE dominates in value with a market cap of 176.46 billion USD, eclipsing ERIC’s 29.42 billion USD by roughly 6.00×.

ADBE’s beta of 1.55 points to much larger expected swings compared to ERIC’s calmer 0.44, suggesting both higher upside and downside potential.

ERIC is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ADBE, which is purely domestic.

SymbolADBEERIC
Company NameAdobe Inc.Telefonaktiebolaget LM Ericsson (publ)
CountryUSSE
SectorTechnologyTechnology
IndustrySoftware - InfrastructureCommunication Equipment
CEOMr. Shantanu NarayenMr. Anthony F. Bartolo
Price414.03 USD8.86 USD
Market Cap176.46 billion USD29.42 billion USD
Beta1.550.44
ExchangeNASDAQNASDAQ
IPO DateAugust 13, 1986August 24, 1981
ADRNoYes

Performance Comparison

This chart compares the performance of ADBE and ERIC over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ADBE and ERIC based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • ERIC features a high P/E of 175.26, indicating strong growth expectations, compared to ADBE at 26.74, which trades at a more standard valuation based on its current earnings.
  • ERIC shows a negative forward PEG of -63.14, signaling expected earnings contraction, while ADBE at 2.48 maintains analysts’ projections for stable or improved profits.
SymbolADBEERIC
Price-to-Earnings Ratio (P/E, TTM)26.74175.26
Forward PEG Ratio (TTM)2.48-63.14
Price-to-Sales Ratio (P/S, TTM)8.011.13
Price-to-Book Ratio (P/B, TTM)13.793.28
Price-to-Free Cash Flow Ratio (P/FCF, TTM)19.226.70
EV-to-EBITDA (TTM)19.286.10
EV-to-Sales (TTM)8.001.12
EV-to-Free Cash Flow (TTM)19.206.64

Dividend Comparison

ADBE offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while ERIC provides a 3.28% dividend yield, giving investors a steady income stream.

SymbolADBEERIC
Dividend Yield (TTM)0.00%3.28%

Financial Strength Metrics Comparison

Explore the financial strength details for ADBE and ERIC in the table below.

SymbolADBEERIC
Current Ratio (TTM)1.181.09
Quick Ratio (TTM)1.180.88
Debt-to-Equity Ratio (TTM)0.500.49
Debt-to-Assets Ratio (TTM)0.220.15
Interest Coverage Ratio (TTM)51.936.76