Adobe Inc. (ADBE) vs The Home Depot, Inc. (HD) Stock Comparison

Compare Stocks › ADBE vs HD

ADBE

Adobe Inc.

$245.99

The Home Depot, Inc.

$328.21

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.

★The Home Depot, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★The Home Depot, Inc. scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
★Dividend yield of 2.84% with a consistent or growing payout over the past 4 years.

Risks

ADBE

⚠FCF yield of 2.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠High leverage (5.10x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠Insiders have sold $2.6M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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ADBE

Valuation

$9.29B

Free Cash Flow

$8.62B

9.20%

FCF Yield

2.64%

14.33

Trailing P/E

23.05

9.33

Forward P/E

20.12

Quality & Moat

40.36%

ROIC

16.77%

62.36%

ROE

110.48%

89.40%

Gross Margin

33.32%

1.29

PEG Ratio

N/A

Balance Sheet Safety

0.58

Debt / Equity

5.10

N/A

Interest Coverage

N/A

-0.02

Net Debt / EBITDA

2.56

N/A

Dividend Yield

2.84%

ADBE: 8Ties: 1HD: 1

ADBEHD

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.

$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

$0.69

created per $1 retained over 3 years

Mediocre Allocator

Σ Retained

$21.95B

Δ Market Cap

+$15.12B

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

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $477.11

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

155.8% Overvalued

Price is 155.8% above estimated fair value

Current Price: $328.21

Strongly undervalued

Strongly overvalued

Fair Value: $128.33

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.

What growth rate is the market pricing in at $328?

+18.9%

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.

87/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

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.

-1.89

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

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.

Insiders 0.1%Institutions 74.6%Retail & Other 25.4%

No. of Institutional Holders5,084

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

Buys (3M)

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

Buys (3M)

Buys (12M)

BRENNEMAN GREGORY D

Director

$999,767

@ $346.66 · 2025-03-14

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

Sells (3M)

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

Sells (3M)

Sells (12M)

Total value (12M): $29.80M

DEATON JOHN A.

Officer

$661,617

@ $369.00 · 2026-03-04

MCPHAIL RICHARD V

Chief Financial Officer

$940,670

@ $368.89 · 2026-03-04

ROSEBOROUGH TERESA WYNN

General Counsel

$1.00M

@ $348.52 · 2025-12-26

BROWN ANGIE

Chief Technology Officer

$695,948

@ $357.63 · 2025-12-12

BASTEK WILLIAM D

Officer

$974,445

@ $423.12 · 2025-09-12

ROSEBOROUGH TERESA WYNN

General Counsel

$2.27M

@ $413.23 · 2025-08-22

BASTEK WILLIAM D

Officer

$1.55M

@ $410.23 · 2025-08-22

DECKER EDWARD P.

Chief Executive Officer

$13.07M

@ $397.22 · 2025-08-21

PADILLA HECTOR A

Officer

$640,609

@ $404.17 · 2025-08-20

BROWN ANGIE

Chief Technology Officer

$404,070

@ $404.07 · 2025-08-20

MCPHAIL RICHARD V

Chief Financial Officer

$1.36M

@ $403.66 · 2025-08-20

DEATON JOHN A.

Officer

$3.29M

@ $369.99 · 2025-06-03

ROSEBOROUGH TERESA WYNN

General Counsel

$2.00M

@ $369.28 · 2025-05-28

SIDDIQUI FAHIM

Chief Technology Officer

$954,564

@ $367.14 · 2025-05-22

BASTEK WILLIAM D

Officer

$1.24M

@ $416.61 · 2024-11-22

HOURIGAN TIMOTHY A

Officer

$6.55M

@ $409.52 · 2024-11-18

ROSEBOROUGH TERESA WYNN

General Counsel

$9.03M

@ $408.91 · 2024-11-14

CAMPBELL ANN-MARIE

Officer

$12.24M

@ $408.40 · 2024-11-14

PADILLA HECTOR A

Officer

$1.48M

@ $408.96 · 2024-11-14

MCPHAIL RICHARD V

Chief Financial Officer

$2.65M

@ $408.45 · 2024-11-13

SCARDINO KIMBERLY R.

Officer

$617,100

@ $363.00 · 2024-08-19

ROSEBOROUGH TERESA WYNN

General Counsel

$1.87M

@ $359.32 · 2024-08-15

CAREY MATTHEW A

Officer

$19.33M

@ $345.18 · 2024-05-16

SIDDIQUI FAHIM

Chief Technology Officer

$1.03M

@ $343.79 · 2024-05-16

PADILLA HECTOR A

Officer

$28,619

@ $349.01 · 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

😨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.

😨Fear(35/100)

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

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)

⚪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 (35)

View ADBE Full Analysis View HD Full Analysis