Critical Analysis: King Digital Entertainment PLC (KING) & Adobe Systems (ADBE)
King Digital Entertainment PLC (NYSE: KING) and Adobe Systems (NASDAQ:ADBE) are both mid-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
This is a summary of recent recommendations for King Digital Entertainment PLC and Adobe Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|King Digital Entertainment PLC||0||0||0||0||N/A|
Institutional and Insider Ownership
87.6% of Adobe Systems shares are held by institutional investors. 0.4% of Adobe Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares King Digital Entertainment PLC and Adobe Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|King Digital Entertainment PLC||N/A||N/A||N/A||N/A||N/A|
|Adobe Systems||$6.90 billion||12.51||$2.32 billion||$3.19||54.91|
Adobe Systems has higher revenue and earnings than King Digital Entertainment PLC.
This table compares King Digital Entertainment PLC and Adobe Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|King Digital Entertainment PLC||19.58%||33.71%||24.95%|
Adobe Systems beats King Digital Entertainment PLC on 7 of the 9 factors compared between the two stocks.
King Digital Entertainment PLC Company Profile
King Digital Entertainment plc is an interactive entertainment company for the mobile world. The Company has four franchises: Candy Crush, Farm Heroes, Bubble Witch and Pet Rescue. The Company develops and publishes games that can be played on its king.com and royalgames.com Websites, Facebook and, mobile platforms, such as iOS and Android. The Company is involved in developing and monetizing digital games on multiple platforms. The Company’s games include Candy Crush Saga, Candy Crush Soda Saga, Farm Heroes Saga, Pet Rescue Saga and Bubble Witch 2 Saga. As of December 31, 2014, the Company had 533 million monthly active users (MAUs), 149 million daily active users (DAUs), 356 million monthly unique users (MUUs) and 8,344 million monthly unique payers (MUPs).
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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