ADBE vs. ZM: Adobe vs. Zoom Communications Stock Comparison
How do Adobe (ADBE) and Zoom Communications (ZM) 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 Zoom Communications (ZM) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | ADBE | ZM |
|---|---|---|
| Name | Adobe Inc. | Zoom Communications, Inc. Class A Common Stock |
| 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 | Application Software |
| Market Capitalization | 93.14 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | August 13, 1986 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ADBE | ZM |
|---|---|---|
| Total Return (1Y) | -27.09% | 12.58% |
| Total Return (3Y, Annualized) | -25.55% | 14.89% |
| Total Return (5Y, Annualized) | -18.62% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ADBE | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 41.62% | 45.03% |
| Beta (5Y) | 1.38 | 0.99 |
| Max Drawdown (5Y) | -71.90% | -79.08% |
| Avg. Volume (3M) | 4.61M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ADBE | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.75 | 0.18 |
| Sortino Ratio (1Y) | -1.04 | 0.28 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Adobe (ADBE) at 61.90% is the standout with ROE above its industry range; Zoom Communications (ZM) at 32.14% also sits in the top quartile.
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%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% keeps the most of each sales dollar — above its industry’s net margin range — and Adobe (ADBE) at 28.05% also retains a top-quartile 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%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Adobe (ADBE) at 34.82% and Zoom Communications (ZM) at 24.61% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
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%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | ADBE | ZM |
|---|---|---|
| ROE (TTM) | 61.90% | 32.14% |
| ROA (TTM) | 20.08% | 6.11% |
| Net Margin (TTM) | 28.05% | 65.19% |
| Operating Margin (TTM) | 34.82% | 24.61% |
| Gross Margin (TTM) | 89.25% | 77.66% |
Growth
Revenue Growth
Adobe (ADBE) at 10.53% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Adobe (ADBE) at 35.11% is closer to the peer norm — faster per-share earnings growth for ZM.
Growth Metrics
| Metric | ADBE | ZM |
|---|---|---|
| Revenue Growth (YoY) | 10.53% | 4.36% |
| Revenue Growth (3Y CAGR) | 10.52% | 3.49% |
| EPS Growth (YoY) | 35.11% | 92.52% |
| EPS Growth (3Y CAGR) | 18.25% | 162.93% |
Financial Strength
Current Ratio (MRQ)
Zoom Communications (ZM) at 3.83 carries current ratio above its industry’s typical mid-range, while Adobe (ADBE) at 0.77 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
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
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Adobe (ADBE) at 0.58 runs a more typical debt-to-equity mix.
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
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | ADBE | ZM |
|---|---|---|
| Current Ratio (MRQ) | 0.77 | 3.83 |
| Debt / Equity (MRQ) | 0.58 | 0.01 |
| Net Debt / EBITDA | 0.12 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Adobe (ADBE) nor Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 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 Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ADBE | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both Adobe (ADBE) at 13.36 and Zoom Communications (ZM) at 8.34 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical 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
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
On P/S ratio, both Adobe (ADBE) at 3.59 and Zoom Communications (ZM) at 5.25 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
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
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
On P/B ratio, both Adobe (ADBE) at 7.95 and Zoom Communications (ZM) at 2.32 are valued close to their industries’ norm against book — neither stands out from peers.
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
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | ADBE | ZM |
|---|---|---|
| P/E Ratio (TTM) | 13.36 | 8.34 |
| P/S Ratio (TTM) | 3.59 | 5.25 |
| P/B Ratio (MRQ) | 7.95 | 2.32 |
| Free Cash Flow Yield (TTM) | 10.03% | 7.53% |