Adobe Systems Incorporated (ADBE)vsNetflix Inc (NFLX)
ADBE
Adobe Systems Incorporated
$237.25
-0.68%
TECHNOLOGY · Cap: $98.06B
NFLX
Netflix Inc
$92.28
+1.50%
COMMUNICATION SERVICES · Cap: $385.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 85% more annual revenue ($45.18B vs $24.45B). ADBE leads profitability with a 29.5% profit margin vs 24.3%. ADBE appears more attractively valued with a PEG of 0.71. ADBE earns a higher WallStSmart Score of 74/100 (B).
ADBE
Strong Buy74
out of 100
Grade: B
NFLX
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.7%
Fair Value
$421.20
Current Price
$237.25
$183.95 discount
Margin of Safety
+22.1%
Fair Value
$118.40
Current Price
$92.28
$26.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 59 in profit
Strong operational efficiency at 37.8%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 30 of every $100 in revenue as profit
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 24.5%
17.6% revenue growth
Areas to Watch
Trading at 8.5x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 14.6x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 37.8%. Revenue growth of 12.0% demonstrates continued momentum.
Bull Case : NFLX
The strongest argument for NFLX centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 24.3% and operating margin at 24.5%. Revenue growth of 17.6% demonstrates continued momentum.
Bear Case : ADBE
The primary concerns for ADBE are Price/Book.
Bear Case : NFLX
The primary concerns for NFLX are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
ADBE profiles as a mature stock while NFLX is a growth play — different risk/reward profiles.
NFLX carries more volatility with a beta of 1.71 — expect wider price swings.
NFLX is growing revenue faster at 17.6% — 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 70/100), backed by strong 29.5% margins and 12.0% revenue growth. NFLX offers better value entry with a 22.1% margin of safety. Both earn "Strong Buy" and "Strong 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.
Visit Website →Netflix Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
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