ADOBE INC. vs MICROSOFT CORPORATION, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where ADBE and MSFT diverge most: on fcf yield, ADBE reads 11.1% and MSFT reads 1.7%; on debt / equity, ADBE reads 0.54 and MSFT reads 0.09. The rest of the comparable metrics sit closer together. What ADBE's price implies is a bet that sits within the historical range (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | ADBE | MSFT |
|---|---|---|
| Price | $242.21 | $535.20 |
| Market cap | $95.8B | $3.98T |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | -2.1% | — |
| P/E | 13.5 | 29.8 |
| P/B | 8.14 | 9.01 |
| P/S | 3.69 | 12.01 |
| EV/EBITDA | 10.0 | 20.3 |
| Revenue growth | +12.0% | +17.8% |
| Gross margin | 88.7% | 67.2% |
| Operating margin | 34.8% | 45.1% |
| Net margin | 28.1% | 37.1% |
| Return on equity | 61.9% | 27.8% |
| Return on assets | 24.3% | 16.2% |
| Return on invested capital | 39.6% | 26.1% |
| FCF yield | 11.1% | 1.7% |
| Dividend yield | — | 0.7% |
| Debt / equity | 0.54 | 0.09 |
| Current ratio | 0.77 | 1.23 |
| Altman Z (solvency) | 6.53 | 7.28 |
| Piotroski F (quality) | 7 / 9 | 5 / 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.