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Compare Stocks › ADBE vs CNC

Adobe Inc. (ADBE) vs Centene Corporation (CNC): 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%. CNC is undervalued at $61, with an intrinsic value of $892 and a margin of safety of 93%. Of the two, CNC has the wider margin of safety.

ADBE
Adobe Inc.
$195.16
VS
CNC
Centene Corporation
$61.02

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.
CNC
  • ★Share count has been reduced by 11% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★FCF yield of 22.7% is historically attractive — the business generates significant cash relative to its price.
  • ★Net debt/EBITDA of -2.5x means the company holds more cash than debt — a net cash position.

Risks

ADBE
    CNC
    • ⚠ROIC has declined by 5.5 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠Gross margin of 10.6% is low, suggesting a competitive or commodity-like market with limited pricing power.
    • ⚠Insiders have sold $5.2M worth of stock in the past 3 months — significant insider liquidation.

    Key Valuation Metrics

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    ADBE
    CNC
    Valuation
    $9.22B
    Free Cash Flow
    $6.85B
    11.88%
    FCF Yield
    22.73%
    11.16
    Trailing P/E
    N/A
    7.09
    Forward P/E
    13.70
    Quality & Moat
    37.82%
    ROIC
    18.84%
    62.95%
    ROE
    -26.04%
    89.40%
    Gross Margin
    10.56%
    0.57
    PEG Ratio
    1.18
    Balance Sheet Safety
    0.13
    Net Debt / Equity
    Net cash
    N/A
    Interest Coverage
    N/A
    0.15
    Net Debt / EBITDA
    -2.54
    0.00%
    Dividend Yield
    0.00%
    ADBE: 6Ties: 1CNC: 4
    ADBECNC

    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.

    CNC

    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
    CNC
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-667.0M
    Δ Market Cap
    $-24.93B
    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

    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
    CNC
    93.2% Margin of Safety
    Price is 93.2% below estimated fair value
    Current Price: $61.02
    Fair Value: $891.91
    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.

    CNC

    What growth rate is the market pricing in at $61?

    -18.9%
    Market-Implied FCF Growth Rate

    Market below historical growth — potential opportunity.

    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.
    CNC
    41/100
    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.
    CNC
    -2.01
    Possible 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.
    CNC
    Insiders 0.4%Institutions 100.6%
    No. of Institutional Holders1,248
    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
    CNC
    0
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $738,945
    LONDON SARAH M.
    Chief Executive Officer
    $490,365
    @ $25.50 · 2025-08-08
    SAMUELS THEODORE R II
    Director
    $248,580
    @ $27.62 · 2025-07-28
    GRECO THOMAS R
    Director
    $1.02M
    @ $59.75 · 2024-12-18
    DALLAS HIRAM JAMES
    Director
    $99,904
    @ $59.01 · 2024-12-16
    BLUME JESSICA L
    Director
    $14,870
    @ $59.48 · 2024-12-16
    COUGHLIN CHRISTOPHER J
    Director
    $594,400
    @ $59.44 · 2024-12-16
    SAMUELS THEODORE R II
    Director
    $294,300
    @ $58.86 · 2024-12-13
    ASHER ANDREW LYNN
    Chief Financial Officer
    $1.00M
    @ $58.14 · 2024-11-13
    LONDON SARAH M.
    Chief Executive Officer
    $250,314
    @ $60.80 · 2024-11-08
    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
    CNC
    1
    Sells (3M)
    2
    Sells (12M)
    Total value (12M): $7.74M
    BURDICK KENNETH A
    Director
    $5.16M
    @ $64.55 · 2026-06-10
    BURDICK KENNETH A
    Director
    $2.58M
    @ $39.02 · 2025-12-04
    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.
    CNC
    FearGreed
    😐Neutral(59/100)

    "Market is pricing this stock without strong emotion in either direction"

    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)
    CNC
    ⚪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: Neutral (59)
    View ADBE Full AnalysisView CNC Full Analysis

    Frequently Asked Questions: ADBE vs CNC

    Is Adobe Inc. or Centene Corporation more undervalued in 2026?▼

    Based on our discounted cash flow model, CNC trades at a 93.2% margin of safety (intrinsic value $892 vs. price $61), compared to ADBE's 65.0% margin of safety (intrinsic $558 vs. $195).

    Which stock has a wider economic moat, Adobe Inc. or Centene Corporation?▼

    ADBE scores 100/100 (Wide moat), while CNC scores 41/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Centene Corporation in financial distress?▼

    CNC's Altman Z-Score of 3.0 places it in the Grey 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 Centene Corporation?▼

    Centene Corporation (CNC) generates a 22.7% free cash flow yield, compared to Adobe Inc.'s 11.9%. 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 Centene Corporation?▼

    ADBE earns 37.8% ROIC versus CNC's 18.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.