ADBE vs. PANW: Adobe vs. Palo Alto Networks Stock Comparison
How do Adobe (ADBE) and Palo Alto Networks (PANW) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Adobe (ADBE) and Palo Alto Networks (PANW) both belong to the Software industry, though ADBE is classified under Application Software while PANW falls under Systems Software.
| Profile Item | ADBE | PANW |
|---|---|---|
| Name | Adobe Inc. | Palo Alto Networks, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Systems Software |
| Market Capitalization | 93.14 billion USD | 256.86 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | August 13, 1986 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ADBE | PANW |
|---|---|---|
| Total Return (1Y) | -27.09% | 53.99% |
| Total Return (3Y, Annualized) | -25.55% | 39.16% |
| Total Return (5Y, Annualized) | -18.62% | 30.80% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ADBE | PANW |
|---|---|---|
| Volatility (1Y, Annualized) | 41.62% | 51.34% |
| Beta (5Y) | 1.38 | 1.00 |
| Max Drawdown (5Y) | -71.90% | -36.01% |
| Avg. Volume (3M) | 4.61M | 6.03M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ADBE | PANW |
|---|---|---|
| Sharpe Ratio (1Y) | -0.75 | 0.97 |
| Sortino Ratio (1Y) | -1.04 | 1.49 |
Profitability
ROE (TTM)
Adobe (ADBE) at 61.90% clears its industry range for ROE, a sharper capital-efficiency signal than Palo Alto Networks (PANW) at 1.74%, which is closer to a typical peer reading.
ADBE
Software & Services industry group
61.90%
- ADBE
- 61.90%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
PANW
Software & Services industry group
1.74%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- PANW
- 1.74%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Adobe (ADBE) at 28.05% retains a top-quartile share of revenue as profit, ahead of Palo Alto Networks (PANW) at 2.67%, which keeps about the industry-typical share.
ADBE
Software & Services industry group
28.05%
- Max
- 41.17%
- ADBE
- 28.05%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
PANW
Software & Services industry group
2.67%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- PANW
- 2.67%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Adobe (ADBE) at 34.82% operates in the top operating margin quartile, ahead of Palo Alto Networks (PANW) at 5.40%, which runs around its industry’s norm.
ADBE
Software & Services industry group
34.82%
- Max
- 46.89%
- ADBE
- 34.82%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
PANW
Software & Services industry group
5.40%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- PANW
- 5.40%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | ADBE | PANW |
|---|---|---|
| ROE (TTM) | 61.90% | 1.74% |
| ROA (TTM) | 20.08% | 1.40% |
| Net Margin (TTM) | 28.05% | 2.67% |
| Operating Margin (TTM) | 34.82% | 5.40% |
| Gross Margin (TTM) | 89.25% | 70.38% |
Growth
Revenue Growth
Both Adobe (ADBE) at 10.53% and Palo Alto Networks (PANW) at 24.50% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Adobe (ADBE) at 35.11% is around its peer norm for EPS growth, while Palo Alto Networks (PANW) at -75.00% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | ADBE | PANW |
|---|---|---|
| Revenue Growth (YoY) | 10.53% | 24.50% |
| Revenue Growth (3Y CAGR) | 10.52% | 18.54% |
| EPS Growth (YoY) | 35.11% | -75.00% |
| EPS Growth (3Y CAGR) | 18.25% | -14.50% |
Financial Strength
Current Ratio (MRQ)
Both Adobe (ADBE) at 0.77 and Palo Alto Networks (PANW) at 0.87 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
ADBE
Software & Services industry group
0.77
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- ADBE
- 0.77
- Min
- 0.03
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- PANW
- 0.87
- Min
- 0.03
Debt / Equity (MRQ)
Both Adobe (ADBE) at 0.58 and Palo Alto Networks (PANW) at 0.09 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
ADBE
Software & Services industry group
0.58
- Max
- 2.52
- Q3
- 1.13
- ADBE
- 0.58
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- PANW
- 0.09
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | ADBE | PANW |
|---|---|---|
| Current Ratio (MRQ) | 0.77 | 0.87 |
| Debt / Equity (MRQ) | 0.58 | 0.09 |
| Net Debt / EBITDA | 0.12 | -0.32 |
Dividends
Dividend Yield (TTM)
Neither Adobe (ADBE) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
ADBE
Software & Services industry group
0.00%
- ADBE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Adobe (ADBE) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
ADBE
Software & Services industry group
0.00%
- ADBE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ADBE | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Adobe (ADBE) at 13.36 sits in the cheaper P/E ratio quartile, while Palo Alto Networks (PANW) at 784.60 trades above its peer range — a wide earnings-valuation gap relative to industry peers.
ADBE
Software & Services industry group
13.36
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ADBE
- 13.36
- Min
- 6.69
PANW
Software & Services industry group
784.60
- PANW
- 784.60
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Adobe (ADBE) at 3.59 prices around its industry’s typical P/S ratio, while Palo Alto Networks (PANW) at 22.37 clears its benchmark range — PANW looks notably rich on sales.
ADBE
Software & Services industry group
3.59
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- ADBE
- 3.59
- Q1
- 2.23
- Min
- 0.02
PANW
Software & Services industry group
22.37
- PANW
- 22.37
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Adobe (ADBE) at 7.95 is valued about in line with its industry on P/B ratio, while Palo Alto Networks (PANW) at 9.30 carries an above-peer premium to book — PANW is pricier on assets.
ADBE
Software & Services industry group
7.95
- Max
- 16.63
- Q3
- 8.50
- ADBE
- 7.95
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
PANW
Software & Services industry group
9.30
- Max
- 16.63
- PANW
- 9.30
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | ADBE | PANW |
|---|---|---|
| P/E Ratio (TTM) | 13.36 | 784.60 |
| P/S Ratio (TTM) | 3.59 | 22.37 |
| P/B Ratio (MRQ) | 7.95 | 9.30 |
| Free Cash Flow Yield (TTM) | 10.03% | 1.65% |