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Compare Stocks › ADBE vs EL

Adobe Inc. (ADBE) vs The Estée Lauder Companies Inc. (EL)

ADBE
Adobe Inc.
$245.99
VS
EL
The Estée Lauder Companies Inc.
$85.60

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.
EL
  • ★Gross margin of 74.3% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.

Risks

ADBE
    EL
    • ⚠ROIC has declined by 14.4 percentage points over the observed period, which may signal competitive erosion.
    • ⚠Despite buyback spending, shares outstanding increased in 3 out of 4 years — stock-based compensation is offsetting repurchases.
    • ⚠FCF yield of 5.5% suggests reasonable valuation assuming continued moderate growth.

    Key Valuation Metrics

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    ADBE
    EL
    Valuation
    $9.29B
    Free Cash Flow
    $1.70B
    9.20%
    FCF Yield
    5.47%
    14.33
    Trailing P/E
    N/A
    9.33
    Forward P/E
    28.23
    Quality & Moat
    40.36%
    ROIC
    12.31%
    62.36%
    ROE
    -28.11%
    89.40%
    Gross Margin
    74.32%
    1.29
    PEG Ratio
    N/A
    Balance Sheet Safety
    0.58
    Debt / Equity
    2.33
    N/A
    Interest Coverage
    N/A
    -0.02
    Net Debt / EBITDA
    2.86
    N/A
    Dividend Yield
    1.64%
    ADBE: 8Ties: 1EL: 0
    ADBEEL

    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.

    EL

    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
    EL
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-2.23B
    Δ Market Cap
    $-50.91B
    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
    48.4% Margin of Safety
    Price is 48.4% below estimated fair value
    Current Price: $245.99
    Fair Value: $477.11
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    EL
    73.5% Margin of Safety
    Price is 73.5% below estimated fair value
    Current Price: $85.60
    Fair Value: $323.24
    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 $246?

    +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.

    EL

    What growth rate is the market pricing in at $86?

    +9.0%
    Market-Implied FCF Growth Rate

    Market pricing in significantly higher growth than history — aggressive.

    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.
    EL
    36/100
    No Moat
    70+ Wide · 40-69 Narrow · <40 None

    No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

    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.
    EL
    -3.21
    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 87.8%Retail & Other 11.9%
    No. of Institutional Holders3,534
    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.
    EL
    Insiders 1.6%Institutions 95.9%Retail & Other 2.6%
    No. of Institutional Holders1,345
    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
    EL
    0
    Buys (3M)
    0
    Buys (12M)
    FRIBOURG PAUL J
    Director
    $2.96M
    @ $65.00 · 2025-02-07
    FRIBOURG PAUL J
    Director
    $5.72M
    @ $65.80 · 2025-02-06
    SHRIVASTAVA AKHIL
    Chief Financial Officer
    $46,053
    @ $65.79 · 2025-02-05
    FRIBOURG PAUL J
    Director
    $5.02M
    @ $64.48 · 2024-11-19
    FRIBOURG PAUL J
    Director
    $9.86M
    @ $64.46 · 2024-11-18
    SHRIVASTAVA AKHIL
    Chief Financial Officer
    $65,000
    @ $65.00 · 2024-11-14
    FRIBOURG PAUL J
    Director
    $10.05M
    @ $63.98 · 2024-11-14
    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): $711,495
    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
    RAO DANA J.D.
    General Counsel
    $3.56M
    @ $525.51 · 2024-06-17
    GARFIELD MARK S.
    Officer
    $138,735
    @ $525.51 · 2024-06-17
    GARFIELD MARK S.
    Officer
    $265,644
    @ $447.97 · 2024-06-03
    GARFIELD MARK S.
    Officer
    $389,630
    @ $490.10 · 2024-05-06
    BELSKY SCOTT K
    Officer
    $1.29M
    @ $474.30 · 2024-05-02
    GARFIELD MARK S.
    Officer
    $45,436
    @ $468.41 · 2024-04-25
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    EL
    0
    Sells (3M)
    10
    Sells (12M)
    Total value (12M): $1.02B
    LA LANDE RASHIDA K
    General Counsel
    $151,498
    @ $94.45 · 2025-11-26
    LAUDER JANE A
    Director and Beneficial Owner of more than 10% of a Class of Security
    $1.68M
    @ $94.38 · 2025-11-26
    WEBSTER MERIDITH P
    Officer
    $476,971
    @ $87.84 · 2025-11-18
    STERNLICHT BARRY S
    Director
    $364,749
    @ $91.83 · 2025-11-11
    LAL 2015 ELF TRUST
    Trustee
    $508.60M
    @ $89.70 · 2025-11-06
    EVELYN H. LAUDER 2012 MARITAL TRUST TWO
    Trustee
    $255.22M
    @ $89.70 · 2025-11-06
    LEONARD A LAUDER 2013 REVOCABLE TRUST
    Beneficial Owner of more than 10% of a Class of Security
    $249.91M
    @ $89.70 · 2025-11-06
    FORESTER LYNN
    Director
    $339,288
    @ $91.65 · 2025-08-29
    LA LANDE RASHIDA K
    General Counsel
    $589,594
    @ $91.88 · 2025-08-28
    LAUDER JANE A
    Director and Beneficial Owner of more than 10% of a Class of Security
    $1.39M
    @ $88.23 · 2025-08-21
    FREDA FABRIZIO
    Chief Executive Officer
    $743,259
    @ $67.76 · 2024-11-01
    FORESTER LYNN
    Director
    $364,143
    @ $93.61 · 2024-08-23
    LAUDER JANE A
    Officer, Director and Beneficial Owner
    $1.82M
    @ $121.26 · 2024-05-30
    JUEPTNER PETER
    Officer
    $1.67M
    @ $130.62 · 2024-05-22
    TRAVIS TRACEY THOMAS
    Chief Financial Officer
    $1.97M
    @ $135.73 · 2024-05-15
    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(27/100)

    "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.
    EL
    FearGreed
    😨Fear(33/100)

    "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.

    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 (27)
    EL
    ⚪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 (33)
    View ADBE Full AnalysisView EL Full Analysis
    Adobe Inc. (ADBE) vs The Estée Lauder Companies Inc. (EL) Stock Comparison | SafetyMargin.io