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Adobe Inc. (ADBE) vs Loews Corporation (L): Which Is the Better Buy in 2026?

As of 2026-08-03, ADBE is undervalued at $250, with a DCF intrinsic value of $554 and a margin of safety of 55%. L is undervalued at $116, with an intrinsic value of $606 and a margin of safety of 81%. Of the two, L has the wider margin of safety.

ADBE
Adobe Inc.
$250.41
VS
L
Loews Corporation
$116.01

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.
L
  • ★Loews Corporation scores 97/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Share count has been reduced by 13% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★Each dollar of retained earnings has created $2.24 of earning power — management is an exceptional capital allocator.

Risks

ADBE
    L
    • ⚠Altman Z-Score of 0.69 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

    Key Valuation Metrics

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    ADBE
    L
    Valuation
    $9.22B
    Free Cash Flow
    $2.08B
    9.26%
    FCF Yield
    8.73%
    14.33
    Trailing P/E
    14.74
    9.11
    Forward P/E
    40.00
    Quality & Moat
    37.82%
    ROIC
    6.07%
    62.95%
    ROE
    9.22%
    89.40%
    Gross Margin
    36.04%
    0.68
    PEG Ratio
    1.32
    Balance Sheet Safety
    0.13
    Net Debt / Equity
    0.12
    N/A
    Interest Coverage
    N/A
    0.15
    Net Debt / EBITDA
    0.76
    0.00%
    Dividend Yield
    0.22%
    ADBE: 8Ties: 3L: 1
    ADBEL

    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.

    L

    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
    L
    $1.82
    created per $1 retained over 3 years
    Value Creator
    Σ Retained
    $4.35B
    Δ Market Cap
    +$7.93B
    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
    54.8% Margin of Safety
    Price is 54.8% below estimated fair value
    Current Price: $250.41
    Fair Value: $553.74
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    L
    80.9% Margin of Safety
    Price is 80.9% below estimated fair value
    Current Price: $116.01
    Fair Value: $606.16
    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 $250?

    +1.8%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -0.6%

    The market implies +1.8% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -0.6%, reflecting heavy growth investment expected to generate future returns.

    L

    What growth rate is the market pricing in at $116?

    +4.2%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +1.4%

    The market implies +4.2% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +1.4%, reflecting heavy growth investment expected to generate future returns.

    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.
    L
    97/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

    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.
    L
    -2.53
    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 12.0%
    No. of Institutional Holders3,051
    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.
    L
    Insiders 18.9%Institutions 62.0%Retail & Other 19.1%
    No. of Institutional Holders1,087
    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
    1
    Buys (3M)
    1
    Buys (12M)
    Total value (12M): $1.95M
    RICKS DAVID A
    Director
    $1.95M
    @ $194.51 · 2026-06-25
    DURN DANIEL JAMES
    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
    L
    1
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $1.05M
    ROBUSTO DINO E
    Director
    $523,700
    @ $104.74 · 2026-05-29
    ROBUSTO DINO E
    Director
    $527,200
    @ $105.44 · 2026-05-05
    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
    0
    Sells (3M)
    4
    Sells (12M)
    Total value (12M): $1.05M
    FORUSZ JILLIAN
    Officer
    $185,915
    @ $246.25 · 2026-04-30
    DURN DANIEL JAMES
    Chief Financial Officer
    $331,355
    @ $248.02 · 2026-04-20
    DURN DANIEL JAMES
    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 JAMES
    Chief Financial Officer
    $3.35M
    @ $515.44 · 2024-09-17
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    L
    0
    Sells (3M)
    12
    Sells (12M)
    Total value (12M): $2.22M
    SCHWARTZ MARK S
    Officer and Treasurer
    $346,500
    @ $110.00 · 2026-02-17
    BERMAN ANN E
    Director
    $211,728
    @ $110.16 · 2026-02-10
    ALPERT MARC A
    General Counsel
    $383,983
    @ $109.87 · 2026-02-10
    SCOTT RICHARD WALDO
    Chief Investment Officer
    $104,740
    @ $104.74 · 2025-12-11
    BERMAN ANN E
    Director
    $156,096
    @ $108.10 · 2025-12-01
    FRIBOURG PAUL J
    Director
    $155,923
    @ $108.13 · 2025-12-01
    HARRIS WALTER L
    Director
    $155,563
    @ $107.88 · 2025-12-01
    DIKER CHARLES M
    Director
    $155,635
    @ $107.93 · 2025-12-01
    BERMAN ANN E
    Director
    $137,465
    @ $96.67 · 2025-09-02
    FRIBOURG PAUL J
    Director
    $137,493
    @ $96.69 · 2025-09-02
    HARRIS WALTER L
    Director
    $137,396
    @ $96.69 · 2025-09-02
    DIKER CHARLES M
    Director
    $137,593
    @ $96.76 · 2025-09-02
    FRIBOURG PAUL J
    Director
    $113,068
    @ $88.82 · 2025-06-03
    BERMAN ANN E
    Director
    $113,068
    @ $88.82 · 2025-06-02
    HARRIS WALTER L
    Director
    $113,157
    @ $88.82 · 2025-06-02
    DIKER CHARLES M
    Director
    $112,583
    @ $88.37 · 2025-06-02
    SCOTT RICHARD WALDO
    Chief Investment Officer
    $792,950
    @ $87.92 · 2025-05-08
    BERMAN ANN E
    Director
    $104,019
    @ $86.90 · 2025-03-03
    WELTERS ANTHONY
    Director
    $103,983
    @ $86.87 · 2025-03-03
    FRIBOURG PAUL J
    Director
    $104,007
    @ $86.89 · 2025-03-03
    HARRIS WALTER L
    Director
    $103,983
    @ $86.87 · 2025-03-03
    DIKER CHARLES M
    Director
    $103,816
    @ $86.73 · 2025-03-03
    SCOTT RICHARD WALDO
    Chief Investment Officer
    $689,405
    @ $84.60 · 2025-02-25
    ALPERT MARC A
    General Counsel
    $382,680
    @ $85.04 · 2025-02-11
    TISCH JONATHAN M.
    Retired
    $639,494
    @ $86.81 · 2025-02-07
    TISCH ANDREW H
    Divisional Officer
    $1.37M
    @ $84.67 · 2025-01-03
    TISCH JONATHAN M.
    Divisional Officer
    $1.38M
    @ $84.86 · 2025-01-02
    WELTERS ANTHONY
    Director
    $99,484
    @ $86.81 · 2024-12-02
    BERMAN ANN E
    Director
    $99,106
    @ $86.48 · 2024-12-02
    HARRIS WALTER L
    Director
    $99,278
    @ $86.63 · 2024-12-02
    DIKER CHARLES M
    Director
    $99,507
    @ $86.83 · 2024-12-02
    FRIBOURG PAUL J
    Director
    $99,484
    @ $86.81 · 2024-12-02
    FRIBOURG PAUL J
    Director
    $88,574
    @ $81.41 · 2024-09-03
    WELTERS ANTHONY
    Director
    $88,574
    @ $81.41 · 2024-09-03
    BERMAN ANN E
    Director
    $88,460
    @ $81.38 · 2024-09-03
    HARRIS WALTER L
    Director
    $88,574
    @ $81.41 · 2024-09-03
    DIKER CHARLES M
    Director
    $88,531
    @ $81.37 · 2024-09-03
    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(39/100)

    "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.
    L
    FearGreed
    😏Greed(63/100)

    "Market is optimistic — be cautious and ensure you have a margin of safety"

    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

    Learn more →
    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 (39)
    L
    ⚪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: Greed (63)
    View ADBE Full AnalysisView L Full Analysis

    Frequently Asked Questions: ADBE vs L

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

    Based on our discounted cash flow model, L trades at a 80.9% margin of safety (intrinsic value $606 vs. price $116), compared to ADBE's 54.8% margin of safety (intrinsic $554 vs. $250).

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

    ADBE scores 100/100 (Wide moat), while L scores 97/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Loews Corporation in financial distress?▼

    L's Altman Z-Score of 0.7 places it in the Distress 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 Loews Corporation?▼

    Adobe Inc. (ADBE) generates a 9.3% free cash flow yield, compared to Loews Corporation's 8.7%. 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 Loews Corporation?▼

    ADBE earns 37.8% ROIC versus L's 6.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

    ADBE vs L: Which Is the Better Buy in 2026? | SafetyMargin.io