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

Analyst Ratings

This is a summary of current recommendations for Adobe Systems and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adobe Systems 1 6 23 0 2.73
Adobe Systems Competitors 227 1660 2838 109 2.59

Adobe Systems presently has a consensus price target of $155.22, suggesting a potential downside of 0.35%. As a group, “Application Software” companies have a potential upside of 2.39%. Given Adobe Systems’ peers higher possible upside, analysts clearly believe Adobe Systems has less favorable growth aspects than its peers.

Insider & Institutional Ownership

87.4% of Adobe Systems shares are owned by institutional investors. Comparatively, 70.7% of shares of all “Application Software” companies are owned by institutional investors. 0.4% of Adobe Systems shares are owned by insiders. Comparatively, 16.0% of shares of all “Application Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Adobe Systems and its peers’ 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 -62.35% -76.33% -16.19%

Risk & Volatility

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

Valuation & Earnings

This table compares Adobe Systems and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Adobe Systems $6.53 billion $2.14 billion 53.90
Adobe Systems Competitors $769.36 million $137.09 million -10.20

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

Summary

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

About Adobe Systems

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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