Adobe Inc. (ADBE) vs Atlassian Corporation PLC (TEAM)

Adobe Inc. and Atlassian Corporation PLC are both Software Application companies. Adobe Inc. is the larger, with a market value of $93.8B against $51.5B — 1.8× the size. Atlassian Corporation PLC has negative trailing earnings, so its P/E is not meaningful; Adobe Inc. trades at 13.5×. Atlassian Corporation PLC grew revenue faster over the last twelve months: 26.0% against 12.0%. Adobe Inc. has the higher net margin (28.1% vs −0.82%) and the higher return on invested capital (46.4% vs 0.80%). Across the 21 metrics below, Adobe Inc. leads on 16 and Atlassian Corporation PLC on 5.

Valuation

Metric ADBE TEAM Software Application median
P/E 13.50 n/m 24.69
P/S 3.68 8.19 2.74
P/B 8.13 50.83 2.83
Price to free cash flow 9.03 40.93 17.55
EV/EBITDA 9.54 354.91 14.66
EV/Sales 3.71 8.16 2.65
Earnings yield 7.40% (0.09%) 0.00%
Free cash flow yield 11.07% 2.44% 1.87%

Profitability

Metric ADBE TEAM Software Application median
Gross margin 89.25% 84.83% 67.03%
Operating margin 35.70% 0.16% 0.00%
Net margin 28.05% (0.82%) 0.00%
Free cash flow margin 40.79% 20.07% 5.01%
Return on equity 61.90% (4.48%) 0.00%
Return on assets 24.80% (0.89%) 0.00%
Return on invested capital 46.40% 0.80% 0.00%

Growth

Metric ADBE TEAM Software Application median
Revenue growth (TTM) 12.03% 26.02% 12.48%
EPS growth (last fiscal year) 35.11% 78.57% 32.26%
Revenue growth, 5-year CAGR 13.06% 25.76% 14.21%
Net income growth, 5-year CAGR 6.27% 0.00% 0.00%

Health

Metric ADBE TEAM Software Application median
Debt to equity 0.54 0.93 0.02
Current ratio 0.77 0.78 1.52
Net debt to EBITDA (0.04) (1.66) 0.06

Dividend

Metric ADBE TEAM Software Application median
Dividend yield — — 0.86%
Payout ratio — — 0.29

Size

Metric ADBE TEAM Software Application median
Market cap 93.82b 51.53b 379.49m

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