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Compare Stocks › ADBE vs BLDR

Adobe Inc. (ADBE) vs Builders FirstSource, Inc. (BLDR)

ADBE
Adobe Inc.
$250.71
VS
BLDR
Builders FirstSource, Inc.
$75.72

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.
BLDR
  • ★Share count has been reduced by 20% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★FCF yield of 10.5% is historically attractive — the business generates significant cash relative to its price.
  • ★Market sentiment is in extreme fear territory (score: 20/100) — historically, periods of fear have often presented buying opportunities.

Risks

ADBE
    BLDR
    • ⚠ROIC has declined by 28.7 percentage points over the observed period, which may signal competitive erosion.
    • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
    • ⚠Trailing P/E of 28.9x is 94% above the historical average of 14.9x — the stock trades at a premium to its own history.

    Key Valuation Metrics

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    ADBE
    BLDR
    Valuation
    $9.32B
    Free Cash Flow
    $853.28M
    9.20%
    FCF Yield
    10.48%
    14.62
    Trailing P/E
    28.90
    9.48
    Forward P/E
    12.81
    Quality & Moat
    41.36%
    ROIC
    0.63%
    62.36%
    ROE
    10.87%
    89.40%
    Gross Margin
    29.89%
    1.32
    PEG Ratio
    2.02
    Balance Sheet Safety
    0.58
    Debt / Equity
    1.32
    N/A
    Interest Coverage
    N/A
    -0.02
    Net Debt / EBITDA
    4.30
    N/A
    Dividend Yield
    N/A
    ADBE: 9Ties: 1BLDR: 1
    ADBEBLDR

    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.

    BLDR

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    $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
    BLDR
    $0.78
    created per $1 retained over 3 years
    Mediocre Allocator
    Σ Retained
    $3.05B
    Δ Market Cap
    +$2.37B
    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
    50.0% Margin of Safety
    Price is 50.0% below estimated fair value
    Current Price: $250.71
    Fair Value: $501.89
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    BLDR
    69.2% Margin of Safety
    Price is 69.2% below estimated fair value
    Current Price: $75.72
    Fair Value: $245.98
    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 $251?

    +3.0%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -0.7%

    The market implies +3.0% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -0.7%, reflecting heavy growth investment expected to generate future returns.

    BLDR

    What growth rate is the market pricing in at $76?

    +13.5%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +4.3%

    The market implies +13.5% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +4.3%, reflecting heavy growth investment.

    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.
    BLDR
    46/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability 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.
    BLDR
    -2.87
    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 0.3%Institutions 87.7%Retail & Other 12.0%
    No. of Institutional Holders3,316
    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.
    BLDR
    Insiders 2.7%Institutions 100.3%
    No. of Institutional Holders1,059
    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
    BLDR
    1
    Buys (3M)
    4
    Buys (12M)
    Total value (12M): $60.73M
    LEVY PAUL S
    Director
    $4.39M
    @ $87.73 · 2026-03-13
    VANCE TODD
    Officer
    $224,994
    @ $115.50 · 2025-06-10
    CHARLES DIRKSON R
    Director
    $548,350
    @ $109.67 · 2025-05-27
    LEVY PAUL S
    Director
    $55.57M
    @ $111.15 · 2025-05-09
    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
    1
    Sells (3M)
    3
    Sells (12M)
    Total value (12M): $867,022
    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
    BLDR
    0
    Sells (3M)
    1
    Sells (12M)
    Total value (12M): $181,062
    JOHNSON TIMOTHY D
    General Counsel
    $181,062
    @ $144.85 · 2025-08-22
    RUSH DAVID E.
    Director
    $2.53M
    @ $140.82 · 2025-02-27
    CHRISTOPHE CLEVELAND A
    Director
    $1.78M
    @ $178.41 · 2024-11-07
    STEINKE CRAIG ARTHUR
    Director
    $4.61M
    @ $153.68 · 2024-08-08
    HILLER MICHAEL
    Officer
    $776,344
    @ $159.25 · 2024-05-30
    MCCROBIE PAUL M
    Officer
    $1.55M
    @ $170.11 · 2024-05-24
    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
    😨Fear(37/100)

    "Market is pessimistic — investigate whether fears are temporary or structural"

    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.
    BLDR
    FearGreed
    🥶Extreme Fear(20/100)

    "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.

    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: Fear (37)
    BLDR
    ⚪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 (20)
    View ADBE Full AnalysisView BLDR Full Analysis
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