ADBE vs. ORCL: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADBE and ORCL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ORCL’s market capitalization of 592.98 billion USD is significantly greater than ADBE’s 165.92 billion USD, highlighting its more substantial market valuation.
With betas of 1.54 for ADBE and 1.32 for ORCL, both stocks show similar sensitivity to overall market movements.
| Symbol | ADBE | ORCL |
|---|---|---|
| Company Name | Adobe Inc. | Oracle Corporation |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| CEO | Mr. Shantanu Narayen | Ms. Safra Ada Catz |
| Price | 389.31 USD | 211.46 USD |
| Market Cap | 165.92 billion USD | 592.98 billion USD |
| Beta | 1.54 | 1.32 |
| Exchange | NASDAQ | NYSE |
| IPO Date | August 13, 1986 | March 12, 1986 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADBE and ORCL over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ADBE
51.65%
Software - Infrastructure Industry
- Max
- 98.53%
- Q3
- 24.55%
- Median
- -1.67%
- Q1
- -30.24%
- Min
- -112.38%
ADBE’s Return on Equity of 51.65% is in the upper quartile for the Software - Infrastructure industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ORCL
79.94%
Software - Infrastructure Industry
- Max
- 98.53%
- Q3
- 24.55%
- Median
- -1.67%
- Q1
- -30.24%
- Min
- -112.38%
ORCL’s Return on Equity of 79.94% is in the upper quartile for the Software - Infrastructure industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ADBE
35.47%
Software - Infrastructure Industry
- Max
- 43.01%
- Q3
- 9.13%
- Median
- -0.03%
- Q1
- -16.73%
- Min
- -53.11%
ADBE’s Return on Invested Capital of 35.47% is in the upper quartile for the Software - Infrastructure industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
ORCL
10.87%
Software - Infrastructure Industry
- Max
- 43.01%
- Q3
- 9.13%
- Median
- -0.03%
- Q1
- -16.73%
- Min
- -53.11%
ORCL’s Return on Invested Capital of 10.87% is in the upper quartile for the Software - Infrastructure industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ADBE
30.39%
Software - Infrastructure Industry
- Max
- 50.20%
- Q3
- 9.82%
- Median
- -2.92%
- Q1
- -30.71%
- Min
- -86.77%
ADBE’s Net Profit Margin of 30.39% is in the upper quartile for the Software - Infrastructure industry, signifying strong profitability and more effective cost management than most of its peers.
ORCL
21.68%
Software - Infrastructure Industry
- Max
- 50.20%
- Q3
- 9.82%
- Median
- -2.92%
- Q1
- -30.71%
- Min
- -86.77%
ORCL’s Net Profit Margin of 21.68% is in the upper quartile for the Software - Infrastructure industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ADBE
36.37%
Software - Infrastructure Industry
- Max
- 67.95%
- Q3
- 13.11%
- Median
- -0.68%
- Q1
- -27.89%
- Min
- -81.94%
ADBE’s Operating Profit Margin of 36.37% is 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.
ORCL
30.80%
Software - Infrastructure Industry
- Max
- 67.95%
- Q3
- 13.11%
- Median
- -0.68%
- Q1
- -27.89%
- Min
- -81.94%
ORCL’s Operating Profit Margin of 30.80% is 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.
Profitability at a Glance
| Symbol | ADBE | ORCL |
|---|---|---|
| Return on Equity (TTM) | 51.65% | 79.94% |
| Return on Assets (TTM) | 24.44% | 7.39% |
| Return on Invested Capital (TTM) | 35.47% | 10.87% |
| Net Profit Margin (TTM) | 30.39% | 21.68% |
| Operating Profit Margin (TTM) | 36.37% | 30.80% |
| Gross Profit Margin (TTM) | 89.25% | 77.82% |
Financial Strength
Current Ratio
ADBE
0.99
Software - Infrastructure Industry
- Max
- 4.05
- Q3
- 2.25
- Median
- 1.44
- Q1
- 1.03
- Min
- 0.02
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.
ORCL
0.75
Software - Infrastructure Industry
- Max
- 4.05
- Q3
- 2.25
- Median
- 1.44
- Q1
- 1.03
- Min
- 0.02
ORCL’s Current Ratio of 0.75 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.
Debt-to-Equity Ratio
ADBE
0.03
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.18
- Median
- 0.38
- Q1
- 0.07
- Min
- 0.00
ADBE’s Debt-to-Equity Ratio of 0.03 is in the lower quartile for the Software - Infrastructure industry. This points to a conservative financing strategy with low reliance on debt, resulting in lower financial risk but potentially limiting the scale of its strategic investments compared to more leveraged competitors.
ORCL
4.96
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.18
- Median
- 0.38
- Q1
- 0.07
- Min
- 0.00
ORCL’s Debt-to-Equity Ratio of 4.96 is exceptionally high, falling well outside the typical range for the Software - Infrastructure industry. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates the company’s financial risk.
Interest Coverage Ratio
ADBE
-283.48
Software - Infrastructure Industry
- Max
- 34.07
- Q3
- 5.19
- Median
- 0.10
- Q1
- -17.94
- Min
- -50.82
ADBE has a negative Interest Coverage Ratio of -283.48. This indicates that its operating earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
ORCL
24.22
Software - Infrastructure Industry
- Max
- 34.07
- Q3
- 5.19
- Median
- 0.10
- Q1
- -17.94
- Min
- -50.82
ORCL’s Interest Coverage Ratio of 24.22 is in the upper quartile for the Software - Infrastructure industry, signifying a strong and healthy capacity to meet its interest payments out of operating profits.
Financial Strength at a Glance
| Symbol | ADBE | ORCL |
|---|---|---|
| Current Ratio (TTM) | 0.99 | 0.75 |
| Quick Ratio (TTM) | 0.99 | 0.75 |
| Debt-to-Equity Ratio (TTM) | 0.03 | 4.96 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.62 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.52 | 4.14 |
| Interest Coverage Ratio (TTM) | -283.48 | 24.22 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADBE and ORCL. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
ADBE
0.00%
Software - Infrastructure Industry
- Max
- 1.88%
- 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 all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
ORCL
0.80%
Software - Infrastructure Industry
- Max
- 1.88%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ORCL’s Dividend Yield of 0.80% is in the upper quartile for the Software - Infrastructure industry, offering a more attractive income stream than most of its peers and signaling a strong commitment to shareholder returns.
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 typically means all profits are being reinvested for growth.
ORCL
38.12%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ORCL’s payout ratio of 38.12% is in the upper quartile for the Software - Infrastructure industry. This reflects a generous dividend policy compared to its peers, favoring shareholder payouts over retaining capital.
Dividend at a Glance
| Symbol | ADBE | ORCL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.80% |
| Dividend Payout Ratio (TTM) | 0.00% | 38.12% |
Valuation
Price-to-Earnings Ratio
ADBE
24.48
Software - Infrastructure Industry
- Max
- 155.40
- Q3
- 76.24
- Median
- 28.21
- Q1
- 18.31
- Min
- 1.36
ADBE’s P/E Ratio of 24.48 is comparable to the norm for the Software - Infrastructure industry, suggesting its valuation is neither at a significant premium nor a discount to its peers.
ORCL
47.67
Software - Infrastructure Industry
- Max
- 155.40
- Q3
- 76.24
- Median
- 28.21
- Q1
- 18.31
- Min
- 1.36
ORCL’s P/E Ratio of 47.67 is comparable to the norm for the Software - Infrastructure industry, suggesting its valuation is neither at a significant premium nor a discount to its peers.
Forward P/E to Growth Ratio
ADBE
2.63
Software - Infrastructure Industry
- Max
- 5.45
- Q3
- 2.80
- Median
- 1.27
- Q1
- 0.21
- Min
- 0.00
ADBE’s Forward PEG Ratio of 2.63 is typical for the Software - Infrastructure industry, suggesting its valuation is reasonably aligned with its growth prospects, consistent with sector norms.
ORCL
2.08
Software - Infrastructure Industry
- Max
- 5.45
- Q3
- 2.80
- Median
- 1.27
- Q1
- 0.21
- Min
- 0.00
ORCL’s Forward PEG Ratio of 2.08 is typical for the Software - Infrastructure industry, suggesting its valuation is reasonably aligned with its growth prospects, consistent with sector norms.
Price-to-Book Ratio
ADBE
14.69
Software - Infrastructure Industry
- Max
- 17.28
- Q3
- 8.73
- Median
- 4.43
- Q1
- 2.19
- Min
- 0.00
The P/B Ratio isn’t typically a primary valuation metric for companies in the Software - Infrastructure industry.
ORCL
28.29
Software - Infrastructure Industry
- Max
- 17.28
- Q3
- 8.73
- Median
- 4.43
- Q1
- 2.19
- Min
- 0.00
The P/B Ratio isn’t typically a primary valuation metric for companies in the Software - Infrastructure industry.
Price-to-Sales Ratio
ADBE
7.34
Software - Infrastructure Industry
- Max
- 18.55
- Q3
- 8.28
- Median
- 3.79
- Q1
- 1.30
- Min
- 0.00
ADBE’s P/S Ratio of 7.34 is valued in line with its peers in the Software - Infrastructure industry, suggesting the market’s valuation of its sales is typical for the sector.
ORCL
10.33
Software - Infrastructure Industry
- Max
- 18.55
- Q3
- 8.28
- Median
- 3.79
- Q1
- 1.30
- Min
- 0.00
ORCL’s P/S Ratio of 10.33 is in the upper quartile for the Software - Infrastructure industry. This suggests investors are paying a premium for each dollar of the company’s sales compared to its peers, indicating optimism about its growth prospects.
Valuation at a Glance
| Symbol | ADBE | ORCL |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 24.48 | 47.67 |
| Forward PEG Ratio (TTM) | 2.63 | 2.08 |
| Price-to-Sales Ratio (P/S, TTM) | 7.34 | 10.33 |
| Price-to-Book Ratio (P/B, TTM) | 14.69 | 28.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.58 | -1505.03 |
| EV-to-EBITDA (TTM) | 18.51 | 30.42 |
| EV-to-Sales (TTM) | 7.14 | 11.96 |