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

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Here’s a clear look at ADBE and UI, 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 UI’s 25.65 billion USD, indicating a significant difference in their market valuations.

With betas of 1.54 for ADBE and 1.36 for UI, both stocks show similar sensitivity to overall market movements.

SymbolADBEUI
Company NameAdobe Inc.Ubiquiti Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureCommunication Equipment
CEOShantanu NarayenRobert J. Pera
Price379.31 USD423.97 USD
Market Cap161.66 billion USD25.65 billion USD
Beta1.541.36
ExchangeNASDAQNYSE
IPO DateAugust 13, 1986October 14, 2011
ADRNoNo

Historical Performance

This chart compares the performance of ADBE and UI 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. UI: 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.

UI

217.49%

Communication Equipment Industry

Max
30.07%
Q3
8.07%
Median
1.84%
Q1
-11.93%
Min
-31.65%

UI’s Return on Equity of 217.49% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ADBE vs. UI: A comparison of their ROE against their respective Software - Infrastructure and Communication Equipment 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.

UI

68.13%

Communication Equipment Industry

Max
11.59%
Q3
6.61%
Median
2.97%
Q1
-2.58%
Min
-13.18%

UI’s Return on Invested Capital of 68.13% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ADBE vs. UI: A comparison of their ROIC against their respective Software - Infrastructure and Communication Equipment 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.

UI

23.65%

Communication Equipment Industry

Max
23.65%
Q3
9.21%
Median
2.46%
Q1
-8.56%
Min
-29.87%

A Net Profit Margin of 23.65% places UI in the upper quartile for the Communication Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

ADBE vs. UI: A comparison of their Net Profit Margin against their respective Software - Infrastructure and Communication Equipment 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.

UI

30.72%

Communication Equipment Industry

Max
30.72%
Q3
11.64%
Median
5.79%
Q1
-2.28%
Min
-18.20%

An Operating Profit Margin of 30.72% places UI in the upper quartile for the Communication Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ADBE vs. UI: A comparison of their Operating Margin against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Profitability at a Glance

SymbolADBEUI
Return on Equity (TTM)51.65%217.49%
Return on Assets (TTM)24.44%42.29%
Return on Invested Capital (TTM)35.47%68.13%
Net Profit Margin (TTM)30.39%23.65%
Operating Profit Margin (TTM)36.37%30.72%
Gross Profit Margin (TTM)89.25%42.16%

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.

UI

1.39

Communication Equipment Industry

Max
3.40
Q3
2.59
Median
1.62
Q1
1.32
Min
0.86

UI’s Current Ratio of 1.39 aligns with the median group of the Communication Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

ADBE vs. UI: A comparison of their Current Ratio against their respective Software - Infrastructure and Communication Equipment 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.

UI

0.85

Communication Equipment Industry

Max
1.82
Q3
1.00
Median
0.53
Q1
0.20
Min
0.02

UI’s Debt-to-Equity Ratio of 0.85 is typical for the Communication Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ADBE vs. UI: A comparison of their D/E Ratio against their respective Software - Infrastructure and Communication Equipment 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.

UI

16.12

Communication Equipment Industry

Max
16.12
Q3
9.22
Median
2.52
Q1
-0.75
Min
-12.07

UI’s Interest Coverage Ratio of 16.12 is in the upper quartile for the Communication Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ADBE vs. UI: A comparison of their Interest Coverage against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Financial Strength at a Glance

SymbolADBEUI
Current Ratio (TTM)0.991.39
Quick Ratio (TTM)0.990.63
Debt-to-Equity Ratio (TTM)0.030.85
Debt-to-Asset Ratio (TTM)0.010.29
Net Debt-to-EBITDA Ratio (TTM)-0.520.30
Interest Coverage Ratio (TTM)-283.4816.12

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ADBE vs. UI: 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.

UI

0.57%

Communication Equipment Industry

Max
4.72%
Q3
0.38%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.57%, UI offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.

ADBE vs. UI: A comparison of their Dividend Yield against their respective Software - Infrastructure and Communication Equipment 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.

UI

26.44%

Communication Equipment Industry

Max
91.96%
Q3
26.44%
Median
0.00%
Q1
0.00%
Min
0.00%

UI’s Dividend Payout Ratio of 26.44% is within the typical range for the Communication Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ADBE vs. UI: A comparison of their Payout Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Dividend at a Glance

SymbolADBEUI
Dividend Yield (TTM)0.00%0.57%
Dividend Payout Ratio (TTM)0.00%26.44%

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.

UI

46.71

Communication Equipment Industry

Max
44.37
Q3
41.98
Median
30.61
Q1
23.44
Min
2.14

At 46.71, UI’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communication Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ADBE vs. UI: A comparison of their P/E Ratio against their respective Software - Infrastructure and Communication Equipment 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.

UI

7.36

Communication Equipment Industry

Max
15.97
Q3
6.99
Median
2.78
Q1
0.66
Min
0.05

The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.

ADBE vs. UI: A comparison of their Forward PEG Ratio against their respective Software - Infrastructure and Communication Equipment 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.

UI

11.05

Communication Equipment Industry

Max
6.38
Q3
3.88
Median
2.17
Q1
1.15
Min
0.37

With a P/S Ratio of 11.05, UI trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ADBE vs. UI: A comparison of their P/S Ratio against their respective Software - Infrastructure and Communication Equipment 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.

UI

58.81

Communication Equipment Industry

Max
14.42
Q3
7.01
Median
3.09
Q1
1.38
Min
0.41

At 58.81, UI’s P/B Ratio is at an extreme premium to the Communication Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ADBE vs. UI: A comparison of their P/B Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Valuation at a Glance

SymbolADBEUI
Price-to-Earnings Ratio (P/E, TTM)23.8646.71
Forward PEG Ratio (TTM)2.577.36
Price-to-Sales Ratio (P/S, TTM)7.1511.05
Price-to-Book Ratio (P/B, TTM)14.3158.81
Price-to-Free Cash Flow Ratio (P/FCF, TTM)17.1334.79
EV-to-EBITDA (TTM)18.0235.17
EV-to-Sales (TTM)6.9511.14