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Compare Stocks › ADBE vs MSFT

Adobe Inc. (ADBE) vs Microsoft Corporation (MSFT)

ADBE
Adobe Inc.
$245.99
VS
MSFT
Microsoft Corporation
$389.02

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.
MSFT
  • ★Microsoft Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 68.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Microsoft Corporation scores 88/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

ADBE
    MSFT
    • ⚠FCF yield of 2.5% 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
    MSFT
    Valuation
    $9.29B
    Free Cash Flow
    $71.61B
    9.20%
    FCF Yield
    2.48%
    14.33
    Trailing P/E
    24.33
    9.33
    Forward P/E
    20.64
    Quality & Moat
    40.36%
    ROIC
    22.10%
    62.36%
    ROE
    26.05%
    89.40%
    Gross Margin
    68.59%
    1.29
    PEG Ratio
    0.41
    Balance Sheet Safety
    0.58
    Debt / Equity
    0.32
    N/A
    Interest Coverage
    N/A
    -0.02
    Net Debt / EBITDA
    0.19
    N/A
    Dividend Yield
    0.93%
    ADBE: 7Ties: 1MSFT: 3
    ADBEMSFT

    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.

    MSFT

    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
    MSFT
    $9.18
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $196.68B
    Δ Market Cap
    +$1.81T
    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
    MSFT
    0.5% Overvalued
    Price is 0.5% above estimated fair value
    Current Price: $389.02
    Fair Value: $387.10
    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.

    MSFT

    What growth rate is the market pricing in at $389?

    +12.6%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +17.4%

    The market implies +12.6% Owner Earnings growth, roughly in line with history — reasonably priced.

    Standard FCF implies +17.4%, 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.
    MSFT
    88/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by revenue predictability. Reinvestment Efficiency 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.
    MSFT
    -2.51
    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.
    MSFT
    Insiders 0.1%Institutions 76.0%Retail & Other 23.9%
    No. of Institutional Holders8,054
    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
    MSFT
    1
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $3.44M
    STANTON JOHN W.
    Director
    $1.99M
    @ $397.35 · 2026-02-18
    SMITH BRADFORD LEE
    President
    $1.45M
    @ $377.47 · 2025-04-23
    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
    MSFT
    1
    Sells (3M)
    13
    Sells (12M)
    Total value (12M): $172.43M
    HOGAN KATHLEEN T
    Officer
    $5.05M
    @ $409.55 · 2026-03-06
    NUMOTO TAKESHI
    Officer
    $1.36M
    @ $478.72 · 2025-12-04
    ALTHOFF JUDSON
    Officer
    $6.27M
    @ $491.52 · 2025-12-02
    SMITH BRADFORD LEE
    President
    $19.97M
    @ $518.64 · 2025-11-03
    NADELLA SATYA
    Chief Executive Officer
    $75.32M
    @ $504.78 · 2025-09-03
    NUMOTO TAKESHI
    Officer
    $2.56M
    @ $527.32 · 2025-08-12
    NUMOTO TAKESHI
    Officer
    $1.39M
    @ $463.00 · 2025-06-03
    NUMOTO TAKESHI
    Officer
    $460,008
    @ $460.01 · 2025-05-30
    HOGAN KATHLEEN T
    Officer
    $9.76M
    @ $453.77 · 2025-05-21
    ALTHOFF JUDSON
    Officer
    $7.33M
    @ $458.18 · 2025-05-19
    COLEMAN AMY
    Officer
    $5.99M
    @ $452.04 · 2025-05-15
    SMITH BRADFORD LEE
    President
    $1.68M
    @ $438.44 · 2025-05-05
    SMITH BRADFORD LEE
    President
    $35.30M
    @ $435.84 · 2025-05-05
    NUMOTO TAKESHI
    Officer
    $1.12M
    @ $447.41 · 2024-12-09
    NUMOTO TAKESHI
    Officer
    $874,634
    @ $437.32 · 2024-12-04
    NUMOTO TAKESHI
    Officer
    $1.50M
    @ $428.76 · 2024-12-02
    ALTHOFF JUDSON
    Officer
    $10.43M
    @ $417.00 · 2024-11-22
    NUMOTO TAKESHI
    Officer
    $414,720
    @ $414.72 · 2024-11-22
    YOUNG CHRISTOPHER DAVID
    Officer
    $3.05M
    @ $423.66 · 2024-11-12
    HOGAN KATHLEEN T
    Officer
    $7.16M
    @ $411.86 · 2024-09-10
    NUMOTO TAKESHI
    Officer
    $1.03M
    @ $411.04 · 2024-09-10
    SMITH BRADFORD LEE
    President
    $16.10M
    @ $402.59 · 2024-09-09
    HOOD AMY E
    Chief Financial Officer
    $15.60M
    @ $410.55 · 2024-09-05
    NADELLA SATYA
    Chief Executive Officer
    $32.02M
    @ $408.63 · 2024-09-04
    NUMOTO TAKESHI
    Officer
    $235,535
    @ $416.14 · 2024-06-03
    ALTHOFF JUDSON
    Officer
    $10.64M
    @ $425.68 · 2024-05-23
    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.
    MSFT
    FearGreed
    😐Neutral(43/100)

    "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

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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)
    MSFT
    ⚪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 (43)
    View ADBE Full AnalysisView MSFT Full Analysis