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Compare Stocks › ADBE vs MCHP

Adobe Inc. (ADBE) vs Microchip Technology Incorporated (MCHP): 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%. MCHP is undervalued at $100, with an intrinsic value of $220 and a margin of safety of 55%. Of the two, ADBE has the wider margin of safety.

ADBE
Adobe Inc.
$195.16
VS
MCHP
Microchip Technology Incorporated
$99.77

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.
MCHP
  • ★Management has timed buybacks well — 2 out of 3 years showed value-accretive repurchases.
  • ★PEG ratio of 0.35 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Altman Z-Score of 5.12 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

ADBE
    MCHP
    • ⚠ROIC has declined by 14.7 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠Microchip Technology Incorporated scores only 28/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
    • ⚠FCF yield of 2.1% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.

    Key Valuation Metrics

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    ADBE
    MCHP
    Valuation
    $9.22B
    Free Cash Flow
    $1.14B
    11.88%
    FCF Yield
    2.11%
    11.16
    Trailing P/E
    453.50
    7.09
    Forward P/E
    24.33
    Quality & Moat
    37.82%
    ROIC
    5.26%
    62.95%
    ROE
    3.40%
    89.40%
    Gross Margin
    57.73%
    0.57
    PEG Ratio
    0.35
    Balance Sheet Safety
    0.13
    Net Debt / Equity
    0.84
    N/A
    Interest Coverage
    N/A
    0.15
    Net Debt / EBITDA
    4.43
    0.00%
    Dividend Yield
    1.90%
    ADBE: 9Ties: 1MCHP: 2
    ADBEMCHP

    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.

    MCHP

    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
    MCHP
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-843.3M
    Δ Market Cap
    +$4.89B
    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
    MCHP
    4.4% Margin of Safety
    Price is 4.4% below estimated fair value
    Current Price: $99.77
    Fair Value: $104.40
    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.

    MCHP

    What growth rate is the market pricing in at $100?

    +25.2%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +20.8%

    The market implies +25.2% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +20.8%, reflecting heavy 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.
    MCHP
    28/100
    No Moat
    70+ Wide · 40-69 Narrow · <40 None

    No durable moat detected, though reinvestment efficiency 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.
    MCHP
    -2.85
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
    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.
    MCHP
    Insiders 2.1%Institutions 100.6%
    No. of Institutional Holders1,615
    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
    MCHP
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    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
    MCHP
    3
    Sells (3M)
    6
    Sells (12M)
    Total value (12M): $4.08M
    CHAPMAN MATTHEW W
    Director
    $292,546
    @ $97.52 · 2026-05-28
    CHAPMAN MATTHEW W
    Director
    $954,799
    @ $95.48 · 2026-05-15
    BUNKER MATHEW B.
    Officer
    $1.02M
    @ $96.88 · 2026-05-13
    KRAWCZYK JOSEPH R. II
    Officer
    $345,743
    @ $78.58 · 2026-02-12
    BUNKER MATHEW B.
    Officer
    $783,700
    @ $78.37 · 2026-02-12
    CHAPMAN MATTHEW W
    Director
    $682,550
    @ $68.25 · 2025-08-25
    JOHNSON KARLTON D
    Director
    $29,981
    @ $60.69 · 2025-05-20
    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.
    MCHP
    FearGreed
    😐Neutral(56/100)

    "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

    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: Extreme Fear (17)
    MCHP
    ⚪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 (56)
    View ADBE Full AnalysisView MCHP Full Analysis

    Frequently Asked Questions: ADBE vs MCHP

    Is Adobe Inc. or Microchip Technology Incorporated more undervalued in 2026?▼

    Based on our discounted cash flow model, ADBE trades at a 65.0% margin of safety (intrinsic value $558 vs. price $195), compared to MCHP's 54.6% margin of safety (intrinsic $220 vs. $100).

    Which stock has a wider economic moat, Adobe Inc. or Microchip Technology Incorporated?▼

    ADBE scores 100/100 (Wide moat), while MCHP scores 28/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Which company has better free cash flow, Adobe Inc. or Microchip Technology Incorporated?▼

    Adobe Inc. (ADBE) generates a 11.9% free cash flow yield, compared to Microchip Technology Incorporated's 2.1%. 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 Microchip Technology Incorporated?▼

    ADBE earns 37.8% ROIC versus MCHP's 5.3%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.