ADBE vs. NET: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADBE and NET, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADBE | NET |
|---|---|---|
| Company Name | Adobe Inc. | Cloudflare, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | IT Services |
| Market Capitalization | 149.93 billion USD | 67.33 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | August 13, 1986 | September 13, 2019 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADBE and NET 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.
Historical Performance at a Glance
| Symbol | ADBE | NET |
|---|---|---|
| 5-Day Price Return | 1.39% | -1.12% |
| 13-Week Price Return | -15.99% | 22.65% |
| 26-Week Price Return | -23.04% | 9.46% |
| 52-Week Price Return | -37.24% | 129.81% |
| Month-to-Date Return | -1.19% | -6.97% |
| Year-to-Date Return | -20.52% | 79.42% |
| 10-Day Avg. Volume | 3.74M | 2.38M |
| 3-Month Avg. Volume | 3.60M | 3.24M |
| 3-Month Volatility | 26.08% | 35.11% |
| Beta | 1.51 | 2.04 |
Profitability
Return on Equity (TTM)
ADBE
51.65%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
In the upper quartile for the Software 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.
NET
-10.00%
IT Services Industry
- Max
- 29.51%
- Q3
- 16.98%
- Median
- 13.47%
- Q1
- 7.93%
- Min
- -3.97%
NET has a negative Return on Equity of -10.00%. 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.
Net Profit Margin (TTM)
ADBE
30.39%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
A Net Profit Margin of 30.39% places ADBE in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
NET
-6.22%
IT Services Industry
- Max
- 19.82%
- Q3
- 11.49%
- Median
- 6.67%
- Q1
- 3.61%
- Min
- -4.62%
NET has a negative Net Profit Margin of -6.22%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
ADBE
36.37%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
An Operating Profit Margin of 36.37% places ADBE in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
NET
-9.89%
IT Services Industry
- Max
- 21.69%
- Q3
- 14.50%
- Median
- 10.06%
- Q1
- 6.98%
- Min
- 0.06%
NET has a negative Operating Profit Margin of -9.89%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ADBE | NET |
|---|---|---|
| Return on Equity (TTM) | 51.65% | -10.00% |
| Return on Assets (TTM) | 23.26% | -2.99% |
| Net Profit Margin (TTM) | 30.39% | -6.22% |
| Operating Profit Margin (TTM) | 36.37% | -9.89% |
| Gross Profit Margin (TTM) | 89.25% | 76.14% |
Financial Strength
Current Ratio (MRQ)
ADBE
0.99
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
ADBE’s Current Ratio of 0.99 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
NET
5.14
IT Services Industry
- Max
- 2.42
- Q3
- 1.81
- Median
- 1.47
- Q1
- 1.09
- Min
- 0.44
NET’s Current Ratio of 5.14 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio (MRQ)
ADBE
0.54
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
ADBE’s Debt-to-Equity Ratio of 0.54 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
NET
2.63
IT Services Industry
- Max
- 2.33
- Q3
- 1.17
- Median
- 0.54
- Q1
- 0.15
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.63, NET operates with exceptionally high leverage compared to the IT Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
ADBE
67.02
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
ADBE’s Interest Coverage Ratio of 67.02 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
NET
-4.24
IT Services Industry
- Max
- 144.50
- Q3
- 84.49
- Median
- 13.76
- Q1
- 2.59
- Min
- -28.13
NET has a negative Interest Coverage Ratio of -4.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | ADBE | NET |
|---|---|---|
| Current Ratio (MRQ) | 0.99 | 5.14 |
| Quick Ratio (MRQ) | 0.85 | 5.01 |
| Debt-to-Equity Ratio (MRQ) | 0.54 | 2.63 |
| Interest Coverage Ratio (TTM) | 67.02 | -4.24 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ADBE
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- 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.
NET
0.00%
IT Services Industry
- Max
- 2.80%
- Q3
- 1.74%
- Median
- 0.62%
- Q1
- 0.00%
- Min
- 0.00%
NET 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 (TTM)
ADBE
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- 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.
NET
0.00%
IT Services Industry
- Max
- 147.75%
- Q3
- 63.58%
- Median
- 24.63%
- Q1
- 0.00%
- Min
- 0.00%
NET 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 | NET |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
ADBE
22.30
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
In the lower quartile for the Software industry, ADBE’s P/E Ratio of 22.30 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
NET
--
IT Services Industry
- Max
- 41.55
- Q3
- 31.54
- Median
- 23.25
- Q1
- 18.12
- Min
- 6.57
P/E Ratio data for NET is currently unavailable.
Price-to-Sales Ratio (TTM)
ADBE
6.78
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
ADBE’s P/S Ratio of 6.78 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
NET
35.68
IT Services Industry
- Max
- 6.61
- Q3
- 4.37
- Median
- 2.02
- Q1
- 1.20
- Min
- 0.19
With a P/S Ratio of 35.68, NET trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
ADBE
15.45
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
ADBE’s P/B Ratio of 15.45 is in the upper tier for the Software 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.
NET
54.75
IT Services Industry
- Max
- 11.19
- Q3
- 6.38
- Median
- 3.47
- Q1
- 2.31
- Min
- 0.96
At 54.75, NET’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ADBE | NET |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 22.30 | -- |
| Price-to-Sales Ratio (TTM) | 6.78 | 35.68 |
| Price-to-Book Ratio (MRQ) | 15.45 | 54.75 |
| Price-to-Free Cash Flow Ratio (TTM) | 16.23 | 374.68 |