ADBE vs. PANW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADBE and PANW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADBE | PANW |
|---|---|---|
| Company Name | Adobe Inc. | Palo Alto Networks, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Software |
| Market Capitalization | 146.99 billion USD | 139.98 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | August 13, 1986 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADBE and PANW 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 | PANW |
|---|---|---|
| 5-Day Price Return | -0.15% | 2.27% |
| 13-Week Price Return | -8.82% | 4.67% |
| 26-Week Price Return | -11.33% | 18.55% |
| 52-Week Price Return | -31.57% | 21.01% |
| Month-to-Date Return | -1.11% | 1.56% |
| Year-to-Date Return | -20.67% | 13.65% |
| 10-Day Avg. Volume | 4.94M | 6.00M |
| 3-Month Avg. Volume | 4.19M | 7.05M |
| 3-Month Volatility | 24.67% | 32.43% |
| Beta | 1.49 | 0.78 |
Profitability
Return on Equity (TTM)
ADBE
55.19%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
In the upper quartile for the Software industry, ADBE’s Return on Equity of 55.19% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
PANW
16.59%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
PANW’s Return on Equity of 16.59% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ADBE
30.01%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 30.01% places ADBE in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
PANW
12.30%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
PANW’s Net Profit Margin of 12.30% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ADBE
36.25%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
An Operating Profit Margin of 36.25% 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.
PANW
13.48%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
PANW’s Operating Profit Margin of 13.48% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADBE | PANW |
|---|---|---|
| Return on Equity (TTM) | 55.19% | 16.59% |
| Return on Assets (TTM) | 23.78% | 5.22% |
| Net Profit Margin (TTM) | 30.01% | 12.30% |
| Operating Profit Margin (TTM) | 36.25% | 13.48% |
| Gross Profit Margin (TTM) | 89.14% | 73.41% |
Financial Strength
Current Ratio (MRQ)
ADBE
1.02
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
ADBE’s Current Ratio of 1.02 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.
PANW
0.94
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
PANW’s Current Ratio of 0.94 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.
Debt-to-Equity Ratio (MRQ)
ADBE
0.53
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
ADBE’s Debt-to-Equity Ratio of 0.53 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.
PANW
0.00
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
PANW’s Debt-to-Equity Ratio of 0.00 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.
Interest Coverage Ratio (TTM)
ADBE
67.02
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
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.
PANW
532.90
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
With an Interest Coverage Ratio of 532.90, PANW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ADBE | PANW |
|---|---|---|
| Current Ratio (MRQ) | 1.02 | 0.94 |
| Quick Ratio (MRQ) | 0.87 | 0.88 |
| Debt-to-Equity Ratio (MRQ) | 0.53 | 0.00 |
| Interest Coverage Ratio (TTM) | 67.02 | 532.90 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ADBE
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- 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.
PANW
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW 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
- 3.29%
- Q3
- 2.41%
- 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.
PANW
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW 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 | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
ADBE
21.22
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
In the lower quartile for the Software industry, ADBE’s P/E Ratio of 21.22 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
PANW
120.12
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
A P/E Ratio of 120.12 places PANW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
ADBE
6.37
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
ADBE’s P/S Ratio of 6.37 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.
PANW
14.77
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
PANW’s P/S Ratio of 14.77 is in the upper echelon for the Software 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.
Price-to-Book Ratio (MRQ)
ADBE
12.86
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
ADBE’s P/B Ratio of 12.86 is within the conventional range for the Software 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.
PANW
14.82
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
PANW’s P/B Ratio of 14.82 is within the conventional range for the Software 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.
Valuation at a Glance
| Symbol | ADBE | PANW |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 21.22 | 120.12 |
| Price-to-Sales Ratio (TTM) | 6.37 | 14.77 |
| Price-to-Book Ratio (MRQ) | 12.86 | 14.82 |
| Price-to-Free Cash Flow Ratio (TTM) | 15.38 | 45.39 |