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Adobe Inc. (ADBE) vs Franklin Resources, Inc. (BEN): Which Is the Better Buy in 2026?

As of 2026-06-19, ADBE is undervalued at $195, with a DCF intrinsic value of $558 and a margin of safety of 65%. BEN is fairly valued at $33, with an intrinsic value of $37 and a margin of safety of 11%. Of the two, ADBE has the wider margin of safety.

ADBE
Adobe Inc.
$195.16
VS
BEN
Franklin Resources, Inc.
$33.05

Rewards

ADBE
  • ★Adobe Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 89.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Adobe Inc. scores 100/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
BEN
  • ★PEG ratio of 0.41 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.

Risks

ADBE
    BEN
    • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
    • ⚠Trailing P/E of 25.2x is 30% above the historical average of 19.5x — the stock trades at a premium to its own history.
    • ⚠Altman Z-Score of 1.41 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

    Key Valuation Metrics

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    ADBE
    BEN
    Valuation
    $9.22B
    Free Cash Flow
    $-242.14M
    11.88%
    FCF Yield
    -1.41%
    11.16
    Trailing P/E
    25.23
    7.09
    Forward P/E
    11.09
    Quality & Moat
    37.82%
    ROIC
    6.81%
    62.95%
    ROE
    6.70%
    89.40%
    Gross Margin
    37.36%
    0.57
    PEG Ratio
    0.41
    Balance Sheet Safety
    0.13
    Net Debt / Equity
    0.06
    N/A
    Interest Coverage
    N/A
    0.15
    Net Debt / EBITDA
    0.48
    0.00%
    Dividend Yield
    3.98%
    ADBE: 8Ties: 1BEN: 3
    ADBEBEN

    Historical Fundamentals

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    ADBE

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    BEN

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    $1 Retained Earnings Test

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    ADBE
    $-0.60
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $18.12B
    Δ Market Cap
    $-10.93B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
    BEN
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-74.9M
    Δ Market Cap
    $-733.3M
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Discounted Cash Flow (DCF) Analysis

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    ADBE
    65.0% Margin of Safety
    Price is 65.0% below estimated fair value
    Current Price: $195.16
    Fair Value: $558.28
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    BEN
    10.8% Margin of Safety
    Price is 10.8% below estimated fair value
    Current Price: $33.05
    Fair Value: $37.06
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    ADBE

    What growth rate is the market pricing in at $195?

    -1.6%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -4.0%

    The market implies -1.6% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -4.0%, reflecting heavy growth investment expected to generate future returns.

    BEN

    Requires positive FCF to compute implied growth rate.

    Economic Moat Score

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    ADBE
    100/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
    BEN
    47/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with reinvestment efficiency as the key competitive advantage. Improving roic consistency would strengthen the moat.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

    Forensic Accounting

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    ADBE
    -2.85
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
    BEN
    -2.53
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Ownership Breakdown

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    ADBE
    Insiders 0.2%Institutions 88.1%Retail & Other 11.7%
    No. of Institutional Holders3,191
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    BEN
    Insiders 48.5%Institutions 51.4%Retail & Other 0.1%
    No. of Institutional Holders831
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

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    ADBE
    0
    Buys (3M)
    0
    Buys (12M)
    DURN DANIEL J
    Chief Financial Officer
    $507,758
    @ $390.58 · 2025-03-20
    RICKS DAVID A
    Director
    $998,946
    @ $443.98 · 2025-01-28
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    BEN
    0
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $2.13M
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $1.06M
    @ $21.20 · 2025-11-20
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $1.07M
    @ $21.49 · 2025-11-18
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $7,442
    @ $17.72 · 2025-04-04
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $1.96M
    @ $19.57 · 2025-03-04
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $1.91M
    @ $19.08 · 2024-09-11
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $1.98M
    @ $19.84 · 2024-08-29
    JOHNSON JENNIFER M
    Chief Executive Officer
    $249,738
    @ $19.66 · 2024-08-28
    JOHNSON JENNIFER M
    Chief Executive Officer
    $396,021
    @ $20.95 · 2024-08-23
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $4.56M
    @ $22.80 · 2024-06-21
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $2.23M
    @ $22.29 · 2024-06-18
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

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    ADBE
    2
    Sells (3M)
    4
    Sells (12M)
    Total value (12M): $1.05M
    FORUSZ JILLIAN
    Officer
    $185,915
    @ $246.25 · 2026-04-30
    DURN DANIEL J
    Chief Financial Officer
    $331,355
    @ $248.02 · 2026-04-20
    DURN DANIEL J
    Chief Financial Officer
    $485,323
    @ $294.85 · 2026-01-27
    FORUSZ JILLIAN
    Officer
    $50,344
    @ $337.88 · 2025-10-31
    FORUSZ JILLIAN
    Officer
    $175,828
    @ $380.58 · 2025-05-02
    FORUSZ JILLIAN
    Officer
    $145,567
    @ $435.83 · 2025-01-28
    BELSKY SCOTT K
    Officer
    $2.05M
    @ $431.61 · 2025-01-27
    BANSE AMY L
    Director
    $333,300
    @ $550.00 · 2024-12-06
    FORUSZ JILLIAN
    Officer
    $327,987
    @ $485.19 · 2024-10-29
    BELSKY SCOTT K
    Officer
    $232,525
    @ $483.42 · 2024-10-25
    BELSKY SCOTT K
    Officer
    $1.14M
    @ $511.48 · 2024-10-16
    DURN DANIEL J
    Chief Financial Officer
    $3.35M
    @ $515.44 · 2024-09-17
    GARFIELD MARK S.
    Officer
    $52,089
    @ $537.00 · 2024-07-25
    BELSKY SCOTT K
    Officer
    $258,297
    @ $537.00 · 2024-07-25
    GARFIELD MARK S.
    Officer
    $85,255
    @ $564.60 · 2024-07-16
    BELSKY SCOTT K
    Officer
    $1.25M
    @ $561.60 · 2024-07-16
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    BEN
    0
    Sells (3M)
    0
    Sells (12M)
    JOHNSON CHARLES B
    Beneficial Owner of more than 10% of a Class of Security
    $7,379
    @ $17.57 · 2025-04-04
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

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    ADBE
    FearGreed
    🥶Extreme Fear(17/100)

    "Mr. Market is panicking — potential buying opportunity if fundamentals are strong"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    BEN
    FearGreed
    😏Greed(66/100)

    "Market is optimistic — be cautious and ensure you have a margin of safety"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    ⚖️ Buffett Signal

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    ADBE
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Extreme Fear (17)
    BEN
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Greed (66)
    View ADBE Full AnalysisView BEN Full Analysis

    Frequently Asked Questions: ADBE vs BEN

    Is Adobe Inc. or Franklin Resources, Inc. more undervalued in 2026?▼

    Based on our discounted cash flow model, ADBE trades at a 65.0% margin of safety (intrinsic value $558 vs. price $195), compared to BEN's 10.8% margin of safety (intrinsic $37 vs. $33).

    Which stock has a wider economic moat, Adobe Inc. or Franklin Resources, Inc.?▼

    ADBE scores 100/100 (Wide moat), while BEN scores 47/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Franklin Resources, Inc. in financial distress?▼

    BEN's Altman Z-Score of 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. ADBE scores 8.8 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

    Which company has better free cash flow, Adobe Inc. or Franklin Resources, Inc.?▼

    Adobe Inc. (ADBE) generates a 11.9% free cash flow yield, compared to Franklin Resources, Inc.'s -1.4%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

    Which stock has higher return on invested capital, Adobe Inc. or Franklin Resources, Inc.?▼

    ADBE earns 37.8% ROIC versus BEN's 6.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

    ADBE vs BEN: Which Is the Better Buy in 2026? | SafetyMargin.io