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Compare Stocks › ADBE vs KDP

Adobe Inc. (ADBE) vs Keurig Dr Pepper Inc. (KDP)

ADBE
Adobe Inc.
$245.99
VS
KDP
Keurig Dr Pepper Inc.
$27.15

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.
KDP
  • ★Dividend yield of 3.39% with a consistent or growing payout over the past 4 years.
  • ★Trailing P/E of 17.7x is 36% below the historical average of 27.8x — potentially undervalued relative to its own history.

Risks

ADBE
    KDP
    • ⚠Net debt/EBITDA of 4.1x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
    • ⚠Altman Z-Score of 1.36 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
    • ⚠Free cash flow has declined at a 15.4% CAGR over the past 4 years — a concerning trend.

    Key Valuation Metrics

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    ADBE
    KDP
    Valuation
    $9.29B
    Free Cash Flow
    $1.49B
    9.20%
    FCF Yield
    4.03%
    14.33
    Trailing P/E
    17.75
    9.33
    Forward P/E
    10.75
    Quality & Moat
    40.36%
    ROIC
    6.63%
    62.36%
    ROE
    8.15%
    89.40%
    Gross Margin
    54.20%
    1.29
    PEG Ratio
    N/A
    Balance Sheet Safety
    0.58
    Debt / Equity
    0.75
    N/A
    Interest Coverage
    N/A
    -0.02
    Net Debt / EBITDA
    4.08
    N/A
    Dividend Yield
    3.39%
    ADBE: 9Ties: 1KDP: 0
    ADBEKDP

    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.

    KDP

    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
    KDP
    $-5.75
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $2.12B
    Δ Market Cap
    $-12.17B
    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
    KDP
    4.7% Overvalued
    Price is 4.7% above estimated fair value
    Current Price: $27.15
    Fair Value: $25.93
    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.

    KDP

    What growth rate is the market pricing in at $27?

    +11.5%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +16.1%

    The market implies +11.5% Owner Earnings growth, roughly in line with history — reasonably priced.

    Standard FCF implies +16.1%, reflecting ongoing 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.
    KDP
    69/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with margin stability 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 5 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.
    KDP
    -2.35
    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.
    KDP
    Insiders 5.0%Institutions 97.7%
    No. of Institutional Holders1,253
    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
    KDP
    0
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $752,056
    GORLI ERIC
    Officer
    $254,056
    @ $27.69 · 2025-09-11
    VAN DE VEN MICHAEL G
    Director
    $498,000
    @ $33.20 · 2025-06-04
    JAB BEVCO B.V.
    Beneficial Owner of more than 10% of a Class of Security
    $120.68M
    @ $33.34 · 2025-01-29
    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
    KDP
    0
    Sells (3M)
    15
    Sells (12M)
    Total value (12M): $39.11M
    STEPHENS ANGELA A
    Officer
    $295,200
    @ $29.52 · 2025-12-12
    GAMGORT ROBERT JAMES
    Director
    $272,952
    @ $35.91 · 2025-08-20
    GAMGORT ROBERT JAMES
    Director
    $6.84M
    @ $32.90 · 2025-08-01
    GAMGORT ROBERT JAMES
    Director
    $6.90M
    @ $33.18 · 2025-07-29
    DENOOYER MARY BETH
    Officer
    $403,920
    @ $33.66 · 2025-07-17
    DENOOYER MARY BETH
    Officer
    $403,726
    @ $33.64 · 2025-07-01
    DENOOYER MARY BETH
    Officer
    $403,680
    @ $33.64 · 2025-06-20
    DENOOYER MARY BETH
    Officer
    $395,040
    @ $32.92 · 2025-06-03
    GAMGORT ROBERT JAMES
    Director
    $6.88M
    @ $33.10 · 2025-06-02
    DENOOYER MARY BETH
    Officer
    $398,520
    @ $33.21 · 2025-05-22
    STEPHENS ANGELA A
    Officer
    $496,480
    @ $34.24 · 2025-05-07
    DENOOYER MARY BETH
    Officer
    $409,320
    @ $34.11 · 2025-05-06
    GAMGORT ROBERT JAMES
    Director
    $14.16M
    @ $34.04 · 2025-05-01
    DENOOYER MARY BETH
    Officer
    $427,080
    @ $35.59 · 2025-04-17
    DENOOYER MARY BETH
    Officer
    $417,360
    @ $34.78 · 2025-04-01
    DENOOYER MARY BETH
    Officer
    $400,680
    @ $33.39 · 2025-03-20
    GAMGORT ROBERT JAMES
    Officer and Director
    $14.26M
    @ $34.29 · 2025-03-04
    DENOOYER MARY BETH
    Officer
    $408,600
    @ $34.05 · 2025-03-04
    STEPHENS ANGELA A
    Officer
    $251,150
    @ $34.17 · 2025-03-03
    JAB BEVCO B.V.
    Beneficial Owner of more than 10% of a Class of Security
    $2.25B
    @ $32.65 · 2024-10-30
    ARCHAMBAULT MATTHEW ANDREW
    Officer
    $273,520
    @ $34.19 · 2024-05-23
    MINOGUE PATRICK MINOGUE
    Officer
    $580,872
    @ $33.59 · 2024-04-30
    STEPHENS ANGELA A
    Officer
    $840,250
    @ $33.61 · 2024-04-30
    JOHNSON ROGER FREDERICK
    Officer
    $1.06M
    @ $33.82 · 2024-04-26
    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

    Learn more →
    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.
    KDP
    FearGreed
    😨Fear(34/100)

    "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)
    KDP
    ⚪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 (34)
    View ADBE Full AnalysisView KDP Full Analysis