Adobe Systems (NASDAQ: ADBE) is one of 63 public companies in the “Application Software” industry, but how does it weigh in compared to its rivals? We will compare Adobe Systems to similar businesses based off the strength of its analyst recommendations, dividends, risk, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares Adobe Systems and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adobe Systems 22.11% 20.06% 11.72%
Adobe Systems Competitors -58.88% -92.30% -15.81%

Risk & Volatility

Adobe Systems has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Adobe Systems’ rivals have a beta of 1.68, suggesting that their average share price is 68% more volatile than the S&P 500.

Earnings & Valuation

This table compares Adobe Systems and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Adobe Systems $6.53 billion $2.14 billion 53.75
Adobe Systems Competitors $765.20 million $136.59 million -9.71

Adobe Systems has higher revenue and earnings than its rivals. Adobe Systems is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently the more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Adobe Systems and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adobe Systems 1 5 24 0 2.77
Adobe Systems Competitors 224 1651 2820 109 2.59

Adobe Systems presently has a consensus target price of $154.63, indicating a potential downside of 0.46%. All “Application Software” companies have a potential upside of 0.56%. Given Adobe Systems’ rivals higher probable upside, analysts plainly believe Adobe Systems has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

87.5% of Adobe Systems shares are held by institutional investors. Comparatively, 70.8% of shares of all “Application Software” companies are held by institutional investors. 0.4% of Adobe Systems shares are held by insiders. Comparatively, 15.9% of shares of all “Application Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Adobe Systems beats its rivals on 9 of the 13 factors compared.

Adobe Systems Company Profile

Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences. It operates through three segments: Digital Media, Digital Marketing, and Print and Publishing. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content. Its Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Its Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to its legacy type and original equipment manufacturer (OEM) printing businesses.

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