ADBE vs. IBM: Adobe vs. IBM Stock Comparison
How do Adobe (ADBE) and IBM (IBM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Adobe (ADBE) and IBM (IBM) both fall under the Software & Services industry group, but ADBE is classified in Software while IBM is classified in IT Services.
| Profile Item | ADBE | IBM |
|---|---|---|
| Name | Adobe Inc. | International Business Machines Corporation |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | IT Services |
| GICS Sub-Industry | Application Software | IT Consulting & Other Services |
| Market Capitalization | 93.14 billion USD | 231.55 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | August 13, 1986 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ADBE | IBM |
|---|---|---|
| Total Return (1Y) | -27.09% | -16.98% |
| Total Return (3Y, Annualized) | -25.55% | 22.40% |
| Total Return (5Y, Annualized) | -18.62% | 19.64% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ADBE | IBM |
|---|---|---|
| Volatility (1Y, Annualized) | 41.62% | 48.48% |
| Beta (5Y) | 1.38 | 0.79 |
| Max Drawdown (5Y) | -71.90% | -37.50% |
| Avg. Volume (3M) | 4.61M | 5.30M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ADBE | IBM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.75 | -0.44 |
| Sortino Ratio (1Y) | -1.04 | -0.56 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Adobe (ADBE) at 61.90% is the standout with ROE above its industry range; IBM (IBM) at 34.77% also sits in the top quartile.
ADBE
Software & Services industry group
61.90%
- ADBE
- 61.90%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
IBM
Software & Services industry group
34.77%
- Max
- 53.85%
- IBM
- 34.77%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
For every dollar of sales, both Adobe (ADBE) at 28.05% and IBM (IBM) at 15.99% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
ADBE
Software & Services industry group
28.05%
- Max
- 41.17%
- ADBE
- 28.05%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
IBM
Software & Services industry group
15.99%
- Max
- 41.17%
- IBM
- 15.99%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Adobe (ADBE) at 34.82% operates in the top operating margin quartile, ahead of IBM (IBM) at 16.97%, which runs around its industry’s norm.
ADBE
Software & Services industry group
34.82%
- Max
- 46.89%
- ADBE
- 34.82%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
IBM
Software & Services industry group
16.97%
- Max
- 46.89%
- Q3
- 17.64%
- IBM
- 16.97%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | ADBE | IBM |
|---|---|---|
| ROE (TTM) | 61.90% | 34.77% |
| ROA (TTM) | 20.08% | 5.33% |
| Net Margin (TTM) | 28.05% | 15.99% |
| Operating Margin (TTM) | 34.82% | 16.97% |
| Gross Margin (TTM) | 89.25% | 57.97% |
Growth
Revenue Growth
Both Adobe (ADBE) at 10.53% and IBM (IBM) at 7.62% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Adobe (ADBE) at 35.11% is closer to the peer norm — faster per-share earnings growth for IBM.
Growth Metrics
| Metric | ADBE | IBM |
|---|---|---|
| Revenue Growth (YoY) | 10.53% | 7.62% |
| Revenue Growth (3Y CAGR) | 10.52% | 3.72% |
| EPS Growth (YoY) | 35.11% | 73.72% |
| EPS Growth (3Y CAGR) | 18.25% | 83.76% |
Financial Strength
Current Ratio (MRQ)
Both Adobe (ADBE) at 0.77 and IBM (IBM) at 0.86 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
ADBE
Software & Services industry group
0.77
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- ADBE
- 0.77
- Min
- 0.03
IBM
Software & Services industry group
0.86
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- IBM
- 0.86
- Min
- 0.03
Debt / Equity (MRQ)
Adobe (ADBE) at 0.58 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.
ADBE
Software & Services industry group
0.58
- Max
- 2.52
- Q3
- 1.13
- ADBE
- 0.58
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
IBM
Software & Services industry group
1.85
- Max
- 2.52
- IBM
- 1.85
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | ADBE | IBM |
|---|---|---|
| Current Ratio (MRQ) | 0.77 | 0.86 |
| Debt / Equity (MRQ) | 0.58 | 1.85 |
| Net Debt / EBITDA | 0.12 | 3.37 |
Dividends
Dividend Yield (TTM)
Adobe (ADBE) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.73%, ranking against industry peers normally.
ADBE
Software & Services industry group
0.00%
- ADBE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
IBM
Software & Services industry group
2.73%
- IBM
- 2.73%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Adobe (ADBE) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a payout of 57.51%, ranking against industry peers normally.
ADBE
Software & Services industry group
0.00%
- ADBE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
IBM
Software & Services industry group
57.51%
- IBM
- 57.51%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ADBE | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.73% |
| Dividend Payout Ratio (TTM) | 0.00% | 57.51% |
Valuation
P/E Ratio (TTM)
Adobe (ADBE) at 13.36 sits in the cheaper P/E ratio quartile, while IBM (IBM) at 20.90 is closer to its industry’s usual earnings multiple — a discount for ADBE, though growth and earnings durability still matter.
ADBE
Software & Services industry group
13.36
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ADBE
- 13.36
- Min
- 6.69
IBM
Software & Services industry group
20.90
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- IBM
- 20.90
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
On P/S ratio, both Adobe (ADBE) at 3.59 and IBM (IBM) at 3.31 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
ADBE
Software & Services industry group
3.59
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- ADBE
- 3.59
- Q1
- 2.23
- Min
- 0.02
IBM
Software & Services industry group
3.31
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- IBM
- 3.31
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
On P/B ratio, both Adobe (ADBE) at 7.95 and IBM (IBM) at 6.52 are valued close to their industries’ norm against book — neither stands out from peers.
ADBE
Software & Services industry group
7.95
- Max
- 16.63
- Q3
- 8.50
- ADBE
- 7.95
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
IBM
Software & Services industry group
6.52
- Max
- 16.63
- Q3
- 8.50
- IBM
- 6.52
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | ADBE | IBM |
|---|---|---|
| P/E Ratio (TTM) | 13.36 | 20.90 |
| P/S Ratio (TTM) | 3.59 | 3.31 |
| P/B Ratio (MRQ) | 7.95 | 6.52 |
| Free Cash Flow Yield (TTM) | 10.03% | 5.34% |