Adobe Systems Incorporated (ADBE)vsWaters Corporation (WAT)
ADBE
Adobe Systems Incorporated
$253.04
-1.35%
TECHNOLOGY · Cap: $103.68B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Adobe Systems Incorporated generates 549% more annual revenue ($24.45B vs $3.77B). ADBE leads profitability with a 29.5% profit margin vs 11.9%. ADBE appears more attractively valued with a PEG of 0.72. ADBE earns a higher WallStSmart Score of 74/100 (B).
ADBE
Strong Buy74
out of 100
Grade: B
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.5%
Fair Value
$438.58
Current Price
$253.04
$185.54 discount
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 59 in profit
Strong operational efficiency at 38.8%
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
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 9.0x book value
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
Premium valuation, high expectations priced in
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 38.8%. Revenue growth of 12.0% demonstrates continued momentum.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : ADBE
The primary concerns for ADBE are Price/Book.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
ADBE profiles as a mature stock while WAT is a growth play — different risk/reward profiles.
ADBE carries more volatility with a beta of 1.42 — expect wider price swings.
WAT is growing revenue faster at 91.5% — 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 52/100), 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.
Visit Website →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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