ADBE vs. HOOD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADBE and HOOD, 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 HOOD’s 83.31 billion USD, indicating a significant difference in their market valuations.
With betas of 1.54 for ADBE and 2.26 for HOOD, both stocks show similar sensitivity to overall market movements.
Symbol | ADBE | HOOD |
---|---|---|
Company Name | Adobe Inc. | Robinhood Markets, Inc. |
Country | US | US |
Sector | Technology | Technology |
Industry | Software - Infrastructure | Software - Infrastructure |
CEO | Shantanu Narayen | Vladimir Tenev |
Price | 379.31 USD | 94.4 USD |
Market Cap | 161.66 billion USD | 83.31 billion USD |
Beta | 1.54 | 2.26 |
Exchange | NASDAQ | NASDAQ |
IPO Date | August 13, 1986 | July 29, 2021 |
ADR | No | No |
Historical Performance
This chart compares the performance of ADBE and HOOD 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.
HOOD
21.02%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
HOOD’s Return on Equity of 21.02% is on par with the norm for the Software - Infrastructure industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
HOOD
19.59%
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, HOOD’s Return on Invested Capital of 19.59% 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.
HOOD
48.77%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
HOOD’s Net Profit Margin of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Infrastructure industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
HOOD
38.90%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
An Operating Profit Margin of 38.90% places HOOD 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.
Profitability at a Glance
Symbol | ADBE | HOOD |
---|---|---|
Return on Equity (TTM) | 51.65% | 21.02% |
Return on Assets (TTM) | 24.44% | 5.78% |
Return on Invested Capital (TTM) | 35.47% | 19.59% |
Net Profit Margin (TTM) | 30.39% | 48.77% |
Operating Profit Margin (TTM) | 36.37% | 38.90% |
Gross Profit Margin (TTM) | 89.25% | 66.78% |
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.
HOOD
1.35
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
HOOD’s Current Ratio of 1.35 aligns with the median group of the Software - Infrastructure 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.
HOOD
--
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
Debt-to-Equity Ratio data for HOOD is currently unavailable.
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.
HOOD
--
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
Interest Coverage Ratio data for HOOD is currently unavailable.
Financial Strength at a Glance
Symbol | ADBE | HOOD |
---|---|---|
Current Ratio (TTM) | 0.99 | 1.35 |
Quick Ratio (TTM) | 0.99 | 1.35 |
Debt-to-Equity Ratio (TTM) | 0.03 | -- |
Debt-to-Asset Ratio (TTM) | 0.01 | -- |
Net Debt-to-EBITDA Ratio (TTM) | -0.52 | -3.28 |
Interest Coverage Ratio (TTM) | -283.48 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADBE and HOOD. 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.
HOOD
0.00%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
HOOD 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.
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.
HOOD
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
HOOD 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.
Dividend at a Glance
Symbol | ADBE | HOOD |
---|---|---|
Dividend Yield (TTM) | 0.00% | 0.00% |
Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
HOOD
52.52
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
HOOD’s P/E Ratio of 52.52 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.
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.
HOOD
-0.53
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
HOOD has a negative Forward PEG Ratio of -0.53. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
HOOD
25.55
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
With a P/S Ratio of 25.55, HOOD trades at a valuation that eclipses even the highest in the Software - Infrastructure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
HOOD
10.50
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.
Valuation at a Glance
Symbol | ADBE | HOOD |
---|---|---|
Price-to-Earnings Ratio (P/E, TTM) | 23.86 | 52.52 |
Forward PEG Ratio (TTM) | 2.57 | -0.53 |
Price-to-Sales Ratio (P/S, TTM) | 7.15 | 25.55 |
Price-to-Book Ratio (P/B, TTM) | 14.31 | 10.50 |
Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.13 | 78.22 |
EV-to-EBITDA (TTM) | 18.02 | 58.52 |
EV-to-Sales (TTM) | 6.95 | 24.20 |