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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.

Company profile comparison for Adobe (ADBE) and IBM (IBM)
Profile ItemADBEIBM
NameAdobe Inc.International Business Machines Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustryApplication SoftwareIT Consulting & Other Services
Market Capitalization93.14 billion USD231.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateAugust 13, 1986January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ADBE
IBM
GSPC
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Adobe (ADBE) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Adobe (ADBE) and IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Adobe (ADBE) and IBM (IBM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
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

ADBE
IBM
GSPC
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Adobe (ADBE) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Adobe (ADBE) and IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
Volatility (1Y, Annualized)41.62%48.48%
Beta (5Y)1.380.79
Max Drawdown (5Y)-71.90%-37.50%
Avg. Volume (3M)4.61M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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ADBE and IBM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
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%
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Adobe (ADBE) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

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%
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Adobe (ADBE) vs. IBM (IBM): A comparison of their net margin against the Software & Services industry group benchmark.

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%
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Adobe (ADBE) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
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.

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Adobe (ADBE) vs. IBM (IBM): A comparison of their Revenue Growth across different time periods.

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.

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Adobe (ADBE) vs. IBM (IBM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
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
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Adobe (ADBE) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

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
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Adobe (ADBE) vs. IBM (IBM): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
Current Ratio (MRQ)0.770.86
Debt / Equity (MRQ)0.581.85
Net Debt / EBITDA0.123.37

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%
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Adobe (ADBE) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

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%
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Adobe (ADBE) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
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
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Adobe (ADBE) vs. IBM (IBM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

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
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Adobe (ADBE) vs. IBM (IBM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

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
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Adobe (ADBE) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Adobe (ADBE) and IBM (IBM)
MetricADBEIBM
P/E Ratio (TTM)13.3620.90
P/S Ratio (TTM)3.593.31
P/B Ratio (MRQ)7.956.52
Free Cash Flow Yield (TTM)10.03%5.34%