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

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Here’s a clear look at ADBE and NTES, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

ADBE is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolADBENTES
Company NameAdobe Inc.NetEase, Inc.
CountryUnited StatesChina
GICS SectorInformation TechnologyCommunication Services
GICS IndustrySoftwareEntertainment
Market Capitalization149.93 billion USD83.01 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 13, 1986June 30, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of ADBE and NTES 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. NTES: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolADBENTES
5-Day Price Return1.39%0.66%
13-Week Price Return-15.99%9.59%
26-Week Price Return-23.04%24.53%
52-Week Price Return-37.24%41.03%
Month-to-Date Return-1.19%0.17%
Year-to-Date Return-20.52%46.31%
10-Day Avg. Volume3.74M1.03M
3-Month Avg. Volume3.60M1.02M
3-Month Volatility26.08%24.86%
Beta1.510.66

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.

NTES

24.25%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ADBE vs. NTES: A comparison of their Return on Equity (TTM) against their respective Software and Entertainment industry benchmarks.

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.

NTES

31.19%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

ADBE vs. NTES: A comparison of their Net Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

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.

NTES

31.43%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ADBE vs. NTES: A comparison of their Operating Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

Profitability at a Glance

SymbolADBENTES
Return on Equity (TTM)51.65%24.25%
Return on Assets (TTM)23.26%17.31%
Net Profit Margin (TTM)30.39%31.19%
Operating Profit Margin (TTM)36.37%31.43%
Gross Profit Margin (TTM)89.25%63.17%

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.

NTES

3.23

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

ADBE vs. NTES: A comparison of their Current Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

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.

NTES

0.08

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ADBE vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

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.

NTES

161.13

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

ADBE vs. NTES: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolADBENTES
Current Ratio (MRQ)0.993.23
Quick Ratio (MRQ)0.853.10
Debt-to-Equity Ratio (MRQ)0.540.08
Interest Coverage Ratio (TTM)67.02161.13

Growth

Revenue Growth

ADBE vs. NTES: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ADBE vs. NTES: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

NTES

2.18%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.18%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

ADBE vs. NTES: A comparison of their Dividend Yield (TTM) against their respective Software and Entertainment industry benchmarks.

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.

NTES

36.90%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ADBE vs. NTES: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Dividend at a Glance

SymbolADBENTES
Dividend Yield (TTM)0.00%2.18%
Dividend Payout Ratio (TTM)0.00%36.90%

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.

NTES

16.94

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 16.94 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ADBE vs. NTES: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

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.

NTES

5.28

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

NTES’s P/S Ratio of 5.28 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ADBE vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

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.

NTES

4.09

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

NTES’s P/B Ratio of 4.09 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ADBE vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Valuation at a Glance

SymbolADBENTES
Price-to-Earnings Ratio (TTM)22.3016.94
Price-to-Sales Ratio (TTM)6.785.28
Price-to-Book Ratio (MRQ)15.454.09
Price-to-Free Cash Flow Ratio (TTM)16.2313.09