How this ADBE vs ADI comparison is calculated

All metrics are based on trailing twelve months (TTM) financial data, consensus analyst estimates, and standardized valuation ratios. Data is sourced from Financial Modeling Prep and SEC EDGAR. Figures are normalized to ensure a fair comparison between Adobe Inc. and Analog Devices, Inc.. Analyst price targets and ratings are aggregated from Wall Street consensus as of 2026-05-14.

Quick verdict: Adobe Inc. vs Analog Devices, Inc. in 2026

Analog Devices, Inc. (ADI) stands out as the growth leader with its superior revenue expansion, while Adobe Inc. (ADBE) presents a compelling valuation edge and robust profitability. Adobe Inc. also maintains a strong lead in net margins and free cash flow generation, underscoring its operational efficiency. Although Analog Devices, Inc. garners a higher percentage of ‘Buy’ ratings from analysts, ADBE offers substantially more implied upside based on consensus price targets and its intrinsic value calculation. Not investment advice.

Adobe Inc. vs Analog Devices, Inc.: key metrics side by side

A full side-by-side look at Adobe Inc. (ADBE) and Analog Devices, Inc. (ADI) across earnings multiples, profitability, revenue momentum, and analyst sentiment — data updated 2026-05-14.

Relative valuation: ADBE vs ADI

When evaluating the relative valuation of these two technology giants, a significant disparity emerges. Adobe Inc. currently trades at an earnings multiple of just 13.43x, which presents a substantial discount compared to Analog Devices, Inc.’s price-to-earnings ratio of 78.09x. This vast price-to-earnings gap suggests that ADBE stock may be considerably undervalued relative to its earnings, especially when benchmarked against its industry peer. Furthermore, examining the price-to-book metric reveals that ADI holds a slight edge with a P/B of 6.26x, while Adobe Inc. trades at 8.47x its book value.

Perhaps the most striking divergence in valuation lies in the discounted cash flow (DCF) analysis. Based on current consensus data, Adobe Inc. boasts an impressive implied DCF upside of +51.6%, indicating considerable potential for capital appreciation if its intrinsic value is realized. In stark contrast, Analog Devices, Inc. shows a DCF valuation that suggests a downside of -53.3%. This fundamental divergence paints a picture where Adobe Inc. appears to offer a much more attractive entry point for value-oriented investors, despite ADI’s lower price-to-book ratio. The market seems to assign a premium to Analog Devices, Inc.’s shares that is not supported by its intrinsic value calculations, making ADBE the clear winner in terms of a more compelling and potentially undervalued investment opportunity at current levels.

Revenue momentum: Adobe Inc. vs Analog Devices, Inc.

In the realm of topline expansion, Analog Devices, Inc. demonstrates a more robust growth trajectory compared to Adobe Inc. Analog Devices, Inc. reported a year-over-year revenue growth of +16.9%, showcasing strong momentum in its market segments. This rate outpaces the 10.5% revenue growth delivered by ADBE, indicating that the semiconductor company is currently expanding its market footprint at a faster clip. While both companies operate within the broader technology sector, their respective market dynamics and product cycles contribute to these differing expansion rates.

Beyond just revenue figures, a deeper look at operational efficiency through EBITDA margins reveals another interesting point. ADI leads with an impressive EBITDA margin of 46.99%, suggesting superior operational leverage and cost management in generating core profits before non-cash expenses. Adobe Inc. also maintains a strong EBITDA margin at 40.4%, which is commendable but falls short of Analog Devices, Inc.’s efficiency. While Analog Devices, Inc. currently exhibits stronger revenue momentum, this gap may not persist indefinitely if market conditions shift or if Adobe Inc. launches new, high-growth products. Forward estimates will play a crucial role in determining which company can sustain its growth advantage in the long term.

Profitability and cash generation: ADBE vs ADI

When assessing the profitability and cash conversion capabilities of these two technology powerhouses, Adobe Inc. demonstrates a superior financial performance in several key areas. Its net margin stands at an impressive 29.48%, indicating that nearly 30 cents of every dollar in revenue translates into net profit. This is notably higher than Analog Devices, Inc.’s net margin of 23.02%, reflecting ADBE’s efficient management of its operating expenses and robust pricing power within its software-centric business model.

While both companies report “N/A%” for Return on Equity (ROE), which means we cannot directly compare their efficiency in generating profits from shareholder investments using this metric, the free cash flow yield offers another critical perspective on cash generation. Adobe Inc. boasts a robust free cash flow yield of 10.81%, signifying excellent cash conversion relative to its market capitalization. This suggests ADBE is highly effective at turning its revenues into available cash, which can be used for reinvestment, debt reduction, or shareholder returns. In contrast, Analog Devices, Inc. shows a free cash flow yield of 2.16%, indicating a less efficient cash generation profile compared to Adobe Inc. Therefore, for investors prioritizing strong net profitability and superior cash generation relative to share price, Adobe Inc. clearly holds the advantage.

Wall Street view: Adobe Inc. vs Analog Devices, Inc. analyst ratings

The sentiment from Wall Street analysts presents a nuanced picture when comparing Adobe Inc. and Analog Devices, Inc. Analog Devices, Inc. appears to be the more favored stock among analysts in terms of overall ‘Buy’ ratings, with 79.6% of analysts recommending a purchase of ADI shares. This is a considerably higher percentage than the 53.2% buy rating garnered by Adobe Inc., suggesting broader confidence in Analog Devices, Inc.’s near-term prospects among professional forecasters. Both companies, however, hold a general consensus rating of “Buy” from the overall analyst community.

Despite Adobe Inc. receiving a lower percentage of outright buy recommendations, its analyst consensus target price of $345.5 implies a substantial upside potential of +46.4% from its current price. This indicates that while fewer analysts might be bullish, those who are see significant room for growth in Adobe Inc.’s stock value. Conversely, Analog Devices, Inc.’s consensus target of $394.67 suggests a potential downside of -8.7%, despite the higher proportion of ‘Buy’ ratings. This discrepancy highlights that while Analog Devices, Inc. has more cheerleaders, the financial community expects a higher return from ADBE. Investors should note that these targets may vary depending on future estimate revisions and market conditions.

Which investor profile fits ADBE vs ADI?

For the **growth investor** keenly focused on expanding revenue streams, Analog Devices, Inc. (ADI) presents a more compelling case in the current landscape. Its robust year-over-year revenue growth of +16.9% outpaces Adobe Inc.’s 10.5% expansion, signaling stronger topline momentum. This higher rate of expansion, coupled with an impressive EBITDA margin of 46.99%, suggests that Analog Devices, Inc. is effectively scaling its operations and growing its market share, appealing to those who prioritize rapid business expansion and operational efficiency.

Conversely, a **value investor** seeking attractive entry points and substantial implied upside would likely find Adobe Inc. (ADBE) more appealing. ADBE trades at a significantly lower earnings multiple of 13.43x compared to ADI’s P/E of 78.09x, indicating a substantial fundamental discount. Moreover, the discounted cash flow (DCF) analysis projects a considerable +51.6% upside for Adobe Inc. (with a DCF value of $358.0), contrasting sharply with Analog Devices, Inc.’s indicated -53.3% downside (DCF value of $201.73). This makes ADBE an intriguing option for those looking for potential undervaluation and long-term capital appreciation.

For an **income investor**, neither company is a standout, as both are primarily growth-oriented technology stocks. Adobe Inc. offers a 0% dividend yield, meaning it does not currently distribute profits to shareholders via dividends. Analog Devices, Inc. does offer a minimal dividend yield of 0.01%, which, while technically higher than ADBE, is negligible for a strategy focused on income generation. Therefore, investors prioritizing regular dividend payouts will need to look elsewhere in the market. This is not investment advice. Always do your own research.

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