WallStSmart

Adobe Systems Incorporated (ADBE)vsFlex Ltd (FLEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Flex Ltd generates 10% more annual revenue ($26.83B vs $24.45B). ADBE leads profitability with a 29.5% profit margin vs 3.2%. ADBE appears more attractively valued with a PEG of 0.72. ADBE earns a higher WallStSmart Score of 74/100 (B).

ADBE

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 8.7Quality: 6.0
Piotroski: 4/9Altman Z: 4.35

FLEX

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 5.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.31
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADBEUndervalued (+42.2%)

Margin of Safety

+42.2%

Fair Value

$437.61

Current Price

$246.15

$191.46 discount

UndervaluedFair: $437.61Overvalued
FLEXUndervalued (+3.5%)

Margin of Safety

+3.5%

Fair Value

$67.21

Current Price

$145.07

$77.86 discount

UndervaluedFair: $67.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADBE6 strengths · Avg: 9.3/10
Return on EquityProfitability
58.8%10/10

Every $100 of equity generates 59 in profit

Operating MarginProfitability
38.8%10/10

Strong operational efficiency at 38.8%

Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Market CapQuality
$103.68B9/10

Large-cap with strong market position

Profit MarginProfitability
29.5%9/10

Keeps 30 of every $100 in revenue as profit

PEG RatioValuation
0.728/10

Growing faster than its price suggests

FLEX3 strengths · Avg: 8.3/10
Market CapQuality
$53.34B9/10

Large-cap with strong market position

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.9%8/10

16.9% revenue growth

Areas to Watch

ADBE1 concerns · Avg: 4.0/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

FLEX4 concerns · Avg: 3.0/10
Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Debt/EquityHealth
1.093/10

Elevated debt levels

P/E RatioValuation
62.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ADBE

The strongest argument for ADBE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 29.5% and operating margin at 38.8%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : FLEX

The strongest argument for FLEX centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 16.9% demonstrates continued momentum. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : ADBE

The primary concerns for ADBE are Price/Book.

Bear Case : FLEX

The primary concerns for FLEX are Price/Book, Profit Margin, Debt/Equity. A P/E of 62.0x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

ADBE profiles as a mature stock while FLEX is a growth play — different risk/reward profiles.

FLEX carries more volatility with a beta of 1.45 — expect wider price swings.

FLEX is growing revenue faster at 16.9% — sustainability is the question.

ADBE generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

ADBE scores higher overall (74/100 vs 60/100), backed by strong 29.5% margins and 12.0% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Adobe Systems Incorporated

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

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Flex Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.

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