ADOBE INC. vs ALPHABET INC., two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Adobe and Alphabet are both classed as software, though Adobe is a focused application suite and Alphabet an advertising empire. Their net margins are nearly identical near 28%, but Adobe earns a much higher return on equity, 63% to Alphabet's 24, off a smaller, more concentrated business. Adobe is dramatically cheaper, near 12 times earnings to Alphabet's 39, and converts far more of its price into free cash, a 12% yield to 1.4%. Alphabet's appeal is breadth and the search annuity; Adobe's discount is the market's worry about generative-AI competition. Alphabet is priced for durability, Adobe as if its franchise were already eroding.
Comparison updated 2026-06-15.
| Metric | ADBE | GOOGL |
|---|---|---|
| Price | $223.70 | $357.17 |
| Market cap | $90.0B | $4.37T |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | -2.3% | — |
| P/E | 12.8 | 27.2 |
| P/B | 7.82 | 9.13 |
| P/S | 3.57 | 10.35 |
| EV/EBITDA | 9.8 | 29.9 |
| Revenue growth | +11.5% | +17.4% |
| Gross margin | 89.2% | — |
| Operating margin | 33.8% | 36.1% |
| Net margin | 28.7% | 27.1% |
| Return on equity | 62.8% | 23.9% |
| Return on assets | 24.1% | 16.3% |
| Return on invested capital | 38.3% | 20.0% |
| FCF yield | 11.4% | 1.5% |
| Dividend yield | — | 0.2% |
| Debt / equity | 0.58 | 0.17 |
| Current ratio | 0.75 | 1.92 |
| Altman Z (solvency) | 6.18 | 7.72 |
| Piotroski F (quality) | 7 / 9 | 4 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.