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

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Here’s a clear look at ADBE and MTSI, 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 MTSI’s 10.47 billion USD, indicating a significant difference in their market valuations.

With betas of 1.54 for ADBE and 1.40 for MTSI, both stocks show similar sensitivity to overall market movements.

SymbolADBEMTSI
Company NameAdobe Inc.MACOM Technology Solutions Holdings, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureSemiconductors
CEOShantanu NarayenStephen G. Daly
Price379.31 USD140.68 USD
Market Cap161.66 billion USD10.47 billion USD
Beta1.541.40
ExchangeNASDAQNASDAQ
IPO DateAugust 13, 1986March 15, 2012
ADRNoNo

Historical Performance

This chart compares the performance of ADBE and MTSI 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.

ADBE vs. MTSI: Growth of a $10,000 investment over the past one year.

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.

MTSI

-7.59%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

MTSI has a negative Return on Equity of -7.59%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

ADBE vs. MTSI: A comparison of their ROE against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

6.70%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

MTSI’s Return on Invested Capital of 6.70% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.

ADBE vs. MTSI: A comparison of their ROIC against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

-10.24%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

MTSI has a negative Net Profit Margin of -10.24%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ADBE vs. MTSI: A comparison of their Net Profit Margin against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

11.79%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

MTSI’s Operating Profit Margin of 11.79% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

ADBE vs. MTSI: A comparison of their Operating Margin against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Profitability at a Glance

SymbolADBEMTSI
Return on Equity (TTM)51.65%-7.59%
Return on Assets (TTM)24.44%-4.51%
Return on Invested Capital (TTM)35.47%6.70%
Net Profit Margin (TTM)30.39%-10.24%
Operating Profit Margin (TTM)36.37%11.79%
Gross Profit Margin (TTM)89.25%53.58%

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.

MTSI

3.56

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

MTSI’s Current Ratio of 3.56 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

ADBE vs. MTSI: A comparison of their Current Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

0.44

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

MTSI’s Debt-to-Equity Ratio of 0.44 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ADBE vs. MTSI: A comparison of their D/E Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

36.25

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

MTSI’s Interest Coverage Ratio of 36.25 is in the upper quartile for the Semiconductors industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ADBE vs. MTSI: A comparison of their Interest Coverage against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Financial Strength at a Glance

SymbolADBEMTSI
Current Ratio (TTM)0.993.56
Quick Ratio (TTM)0.992.86
Debt-to-Equity Ratio (TTM)0.030.44
Debt-to-Asset Ratio (TTM)0.010.28
Net Debt-to-EBITDA Ratio (TTM)-0.52-14.78
Interest Coverage Ratio (TTM)-283.4836.25

Growth

The following charts compare key year-over-year (YoY) growth metrics for ADBE and MTSI. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ADBE vs. MTSI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ADBE vs. MTSI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ADBE vs. MTSI: A comparison of their annual year-over-year 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.

MTSI

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

MTSI 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.

ADBE vs. MTSI: A comparison of their Dividend Yield against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

MTSI 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.

ADBE vs. MTSI: A comparison of their Payout Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Dividend at a Glance

SymbolADBEMTSI
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.

MTSI

-120.92

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

MTSI has a negative P/E Ratio of -120.92. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

ADBE vs. MTSI: A comparison of their P/E Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

-8.07

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

ADBE vs. MTSI: A comparison of their Forward PEG Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

12.38

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

MTSI’s P/S Ratio of 12.38 is in the upper echelon for the Semiconductors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ADBE vs. MTSI: A comparison of their P/S Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

MTSI

8.70

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

MTSI’s P/B Ratio of 8.70 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ADBE vs. MTSI: A comparison of their P/B Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Valuation at a Glance

SymbolADBEMTSI
Price-to-Earnings Ratio (P/E, TTM)23.86-120.92
Forward PEG Ratio (TTM)2.57-8.07
Price-to-Sales Ratio (P/S, TTM)7.1512.38
Price-to-Book Ratio (P/B, TTM)14.318.70
Price-to-Free Cash Flow Ratio (P/FCF, TTM)17.1354.93
EV-to-EBITDA (TTM)18.02-382.77
EV-to-Sales (TTM)6.9512.88