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

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

Company Overview

ADBE’s market capitalization of 161.66 billion USD is substantially larger than STX’s 31.71 billion USD, indicating a significant difference in their market valuations.

With betas of 1.54 for ADBE and 1.43 for STX, both stocks show similar sensitivity to overall market movements.

SymbolADBESTX
Company NameAdobe Inc.Seagate Technology Holdings plc
CountryUSIE
SectorTechnologyTechnology
IndustrySoftware - InfrastructureComputer Hardware
CEOShantanu NarayenWilliam David Mosley
Price379.31 USD149.44 USD
Market Cap161.66 billion USD31.71 billion USD
Beta1.541.43
ExchangeNASDAQNASDAQ
IPO DateAugust 13, 1986December 11, 2002
ADRNoNo

Historical Performance

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

Profitability

Return on Equity

ADBE

51.65%

Software - Infrastructure Industry

Max
80.61%
Q3
29.97%
Median
2.84%
Q1
-8.35%
Min
-56.26%

In the upper quartile for the Software - Infrastructure 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.

STX

-127.18%

Computer Hardware Industry

Max
123.03%
Q3
15.78%
Median
-13.44%
Q1
-119.16%
Min
-227.95%

STX has a negative Return on Equity of -127.18%. 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.

ADBE vs. STX: A comparison of their ROE against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Return on Invested Capital

ADBE

35.47%

Software - Infrastructure Industry

Max
39.31%
Q3
11.97%
Median
1.67%
Q1
-7.10%
Min
-34.29%

In the upper quartile for the Software - Infrastructure industry, ADBE’s Return on Invested Capital of 35.47% signifies a highly effective use of its capital to generate profits when compared to its peers.

STX

30.37%

Computer Hardware Industry

Max
30.37%
Q3
20.44%
Median
7.03%
Q1
-12.47%
Min
-31.70%

In the upper quartile for the Computer Hardware industry, STX’s Return on Invested Capital of 30.37% signifies a highly effective use of its capital to generate profits when compared to its peers.

ADBE vs. STX: A comparison of their ROIC against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Net Profit Margin

ADBE

30.39%

Software - Infrastructure Industry

Max
46.46%
Q3
14.65%
Median
2.66%
Q1
-7.70%
Min
-35.45%

A Net Profit Margin of 30.39% places ADBE in the upper quartile for the Software - Infrastructure industry, signifying strong profitability and more effective cost management than most of its peers.

STX

17.49%

Computer Hardware Industry

Max
40.72%
Q3
10.87%
Median
4.33%
Q1
-378.64%
Min
-753.20%

A Net Profit Margin of 17.49% places STX in the upper quartile for the Computer Hardware industry, signifying strong profitability and more effective cost management than most of its peers.

ADBE vs. STX: A comparison of their Net Profit Margin against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Operating Profit Margin

ADBE

36.37%

Software - Infrastructure Industry

Max
48.51%
Q3
16.56%
Median
4.48%
Q1
-6.43%
Min
-40.18%

An Operating Profit Margin of 36.37% places ADBE 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.

STX

19.12%

Computer Hardware Industry

Max
42.27%
Q3
13.53%
Median
4.56%
Q1
-295.01%
Min
-592.84%

An Operating Profit Margin of 19.12% places STX in the upper quartile for the Computer Hardware industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ADBE vs. STX: A comparison of their Operating Margin against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Profitability at a Glance

SymbolADBESTX
Return on Equity (TTM)51.65%-127.18%
Return on Assets (TTM)24.44%19.75%
Return on Invested Capital (TTM)35.47%30.37%
Net Profit Margin (TTM)30.39%17.49%
Operating Profit Margin (TTM)36.37%19.12%
Gross Profit Margin (TTM)89.25%33.79%

Financial Strength

Current Ratio

ADBE

0.99

Software - Infrastructure Industry

Max
3.80
Q3
2.25
Median
1.51
Q1
1.10
Min
0.23

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.

STX

1.36

Computer Hardware Industry

Max
20.73
Q3
11.54
Median
2.69
Q1
1.40
Min
0.73

STX’s Current Ratio of 1.36 falls into the lower quartile for the Computer Hardware industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ADBE vs. STX: A comparison of their Current Ratio against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Debt-to-Equity Ratio

ADBE

0.03

Software - Infrastructure Industry

Max
2.56
Q3
1.12
Median
0.33
Q1
0.05
Min
0.00

Falling into the lower quartile for the Software - Infrastructure industry, ADBE’s Debt-to-Equity Ratio of 0.03 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

STX

-6.21

Computer Hardware Industry

Max
1.36
Q3
0.67
Median
0.04
Q1
0.03
Min
0.00

STX has a Debt-to-Equity Ratio of -6.21, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

ADBE vs. STX: A comparison of their D/E Ratio against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Interest Coverage Ratio

ADBE

-283.48

Software - Infrastructure Industry

Max
32.21
Q3
5.24
Median
0.95
Q1
-17.99
Min
-50.82

ADBE has a negative Interest Coverage Ratio of -283.48. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

STX

4.98

Computer Hardware Industry

Max
32.50
Q3
21.85
Median
4.98
Q1
-7.71
Min
-34.24

STX’s Interest Coverage Ratio of 4.98 is positioned comfortably within the norm for the Computer Hardware industry, indicating a standard and healthy capacity to cover its interest payments.

ADBE vs. STX: A comparison of their Interest Coverage against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Financial Strength at a Glance

SymbolADBESTX
Current Ratio (TTM)0.991.36
Quick Ratio (TTM)0.990.75
Debt-to-Equity Ratio (TTM)0.03-6.21
Debt-to-Asset Ratio (TTM)0.010.68
Net Debt-to-EBITDA Ratio (TTM)-0.522.05
Interest Coverage Ratio (TTM)-283.484.98

Growth

The following charts compare key year-over-year (YoY) growth metrics for ADBE and STX. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ADBE vs. STX: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ADBE vs. STX: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ADBE vs. STX: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ADBE

0.00%

Software - Infrastructure Industry

Max
4.07%
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 earnings, though it may be less typical in mature, income-oriented sectors.

STX

1.91%

Computer Hardware Industry

Max
9.24%
Q3
1.58%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.91%, STX offers a more attractive income stream than most of its peers in the Computer Hardware industry, signaling a strong commitment to shareholder returns.

ADBE vs. STX: A comparison of their Dividend Yield against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

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 is a common strategy for growth-oriented companies that reinvest all profits back into the business.

STX

39.76%

Computer Hardware Industry

Max
193.79%
Q3
30.72%
Median
0.00%
Q1
0.00%
Min
0.00%

STX’s Dividend Payout Ratio of 39.76% is in the upper quartile for the Computer Hardware industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ADBE vs. STX: A comparison of their Payout Ratio against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Dividend at a Glance

SymbolADBESTX
Dividend Yield (TTM)0.00%1.91%
Dividend Payout Ratio (TTM)0.00%39.76%

Valuation

Price-to-Earnings Ratio

ADBE

23.86

Software - Infrastructure Industry

Max
107.77
Q3
54.40
Median
28.10
Q1
18.03
Min
5.32

ADBE’s P/E Ratio of 23.86 is within the middle range for the Software - Infrastructure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

STX

21.21

Computer Hardware Industry

Max
24.60
Q3
24.01
Median
20.31
Q1
18.24
Min
13.38

STX’s P/E Ratio of 21.21 is within the middle range for the Computer Hardware industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ADBE vs. STX: A comparison of their P/E Ratio against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Forward P/E to Growth Ratio

ADBE

2.57

Software - Infrastructure Industry

Max
8.12
Q3
3.94
Median
2.13
Q1
0.94
Min
0.01

ADBE’s Forward PEG Ratio of 2.57 is within the middle range of its peers in the Software - Infrastructure industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

STX

0.71

Computer Hardware Industry

Max
9.77
Q3
5.18
Median
1.77
Q1
1.17
Min
0.02

The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.

ADBE vs. STX: A comparison of their Forward PEG Ratio against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Price-to-Sales Ratio

ADBE

7.15

Software - Infrastructure Industry

Max
18.25
Q3
9.05
Median
4.77
Q1
2.30
Min
0.11

ADBE’s P/S Ratio of 7.15 aligns with the market consensus for the Software - Infrastructure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

STX

3.71

Computer Hardware Industry

Max
57.61
Q3
47.40
Median
3.37
Q1
1.56
Min
0.43

STX’s P/S Ratio of 3.71 aligns with the market consensus for the Computer Hardware industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ADBE vs. STX: A comparison of their P/S Ratio against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Price-to-Book Ratio

ADBE

14.31

Software - Infrastructure Industry

Max
19.94
Q3
10.91
Median
6.33
Q1
2.95
Min
0.51

The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.

STX

-38.22

Computer Hardware Industry

Max
21.21
Q3
14.71
Median
9.28
Q1
3.74
Min
0.43

STX has a negative P/B Ratio of -38.22, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

ADBE vs. STX: A comparison of their P/B Ratio against their respective Software - Infrastructure and Computer Hardware industry benchmarks.

Valuation at a Glance

SymbolADBESTX
Price-to-Earnings Ratio (P/E, TTM)23.8621.21
Forward PEG Ratio (TTM)2.570.71
Price-to-Sales Ratio (P/S, TTM)7.153.71
Price-to-Book Ratio (P/B, TTM)14.31-38.22
Price-to-Free Cash Flow Ratio (P/FCF, TTM)17.1341.03
EV-to-EBITDA (TTM)18.0217.02
EV-to-Sales (TTM)6.954.22