Adobe Inc. (ADBE) vs Salesforce, Inc. (CRM)

Adobe Inc. and Salesforce, Inc. are both Software Application companies. Salesforce, Inc. is the larger, with a market value of $194.9B against $92.6B — 2.1× the size. Adobe Inc. trades at the lower P/E: 13.1× against 21.3×. Adobe Inc. grew revenue faster over the last twelve months: 12.0% against 11.2%. Adobe Inc. has the higher net margin (28.1% vs 22.0%) and the higher return on invested capital (46.4% vs 8.24%). Across the 22 metrics below, Adobe Inc. leads on 18 and Salesforce, Inc. on 4.

Valuation

Metric ADBE CRM Software Application median
P/E 13.13 21.26 24.79
P/S 3.58 4.37 2.67
P/B 7.91 5.00 3.01
Price to free cash flow 8.78 12.66 16.59
EV/EBITDA 9.27 14.98 14.40
EV/Sales 3.61 5.09 2.62
Earnings yield 7.62% 4.70% 0.00%
Free cash flow yield 11.39% 7.90% 1.91%

Profitability

Metric ADBE CRM Software Application median
Gross margin 89.25% 77.28% 67.03%
Operating margin 35.70% 19.88% 0.00%
Net margin 28.05% 21.99% 0.00%
Free cash flow margin 40.79% 34.49% 4.32%
Return on equity 61.90% 19.38% 0.00%
Return on assets 24.80% 9.33% 0.00%
Return on invested capital 46.40% 8.24% 0.00%

Growth

Metric ADBE CRM Software Application median
Revenue growth (TTM) 12.03% 11.23% 12.40%
EPS growth (last fiscal year) 35.11% 22.64% —
Revenue growth, 5-year CAGR 13.06% 14.34% 13.72%
Net income growth, 5-year CAGR 6.27% 12.86% 0.00%

Health

Metric ADBE CRM Software Application median
Debt to equity 0.54 1.02 0.02
Current ratio 0.77 0.84 1.55
Net debt to EBITDA (0.04) 0.34 0.06

Dividend

Metric ADBE CRM Software Application median
Dividend yield — 6.73% 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric ADBE CRM Software Application median
Market cap 92.59b 194.93b 396.11m

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