Quick verdict: ADBE vs ADI in 2026

In the adbe vs adi stock comparison 2026, both Adobe Inc. and Analog Devices, Inc. present compelling but distinct investment profiles. While Analog Devices (ADI) demonstrates stronger revenue growth and a higher percentage of ‘Buy’ ratings from analysts, Adobe (ADBE) offers a more attractive valuation based on its P/E ratio and substantial DCF upside. Adobe also leads in net profitability and free cash flow generation, suggesting better operational efficiency. Not investment advice.

ADBE vs ADI: key metrics side by side

Full side-by-side comparison of ADBE and ADI across valuation, profitability, growth and analyst sentiment. Data updated 2026-03-27.

ADBE vs ADI valuation comparison

When considering ADBE vs ADI valuation, Adobe (ADBE) appears to be significantly more attractive based on several key metrics. ADBE trades at a P/E ratio of 19.13x, which is considerably lower than ADI’s P/E of 51.05x. This suggests that investors are currently paying a much higher premium for each dollar of Analog Devices’ earnings compared to Adobe’s. Furthermore, Adobe boasts a substantial DCF (Discounted Cash Flow) upside of +37.7%, indicating that its intrinsic value is estimated to be well above its current stock price of $240.88.

In contrast, Analog Devices (ADI) has a DCF upside of -21.8%, implying it may be currently overvalued according to this model, with a fair value of $244.99 against a price of $313.42. While ADI’s P/B ratio of 3.42x is much lower than ADBE’s 11.73x, signaling ADI’s assets are valued less expensively relative to its market price, the P/E and DCF analysis strongly position ADBE as the cheaper stock from a pure valuation perspective in this adbe vs adi fundamentals and valuation comparison. This difference in valuation multiples suggests that ADBE offers a better entry point for value-oriented investors in 2026.

ADBE vs ADI growth comparison

In the realm of growth, Analog Devices (ADI) currently exhibits stronger momentum, reporting a year-over-year revenue growth of +16.9%. This outpaces Adobe’s (ADBE) revenue growth of +10.5%, signaling a more rapid expansion in ADI’s top line. This faster growth rate for ADI could be attributed to increasing demand for its analog, mixed-signal, and DSP integrated circuits across various industries, including industrial, automotive, communications, and consumer electronics.

However, while ADI shows higher revenue growth, Adobe maintains larger overall revenue at $23.77 billion compared to ADI’s $11.02 billion. ADBE’s consistent growth, albeit slower, in its dominant software segments like Creative Cloud and Document Cloud, continues to generate substantial revenue. Looking at analyst target prices, ADBE shows a higher potential upside of +45.2% compared to ADI’s +19.5%. This implies that while ADI is growing faster now, analysts see greater future appreciation potential for ADBE, possibly due to expectations of accelerated growth or a correction in its current valuation. The adbe vs adi growth comparison highlights ADI’s current strong momentum but points to ADBE’s long-term upside according to market analysts.

ADBE vs ADI profitability

When analyzing ADBE vs ADI profitability, Adobe (ADBE) demonstrates superior net margins, achieving 30.0% compared to Analog Devices’ (ADI) 20.58%. This indicates that Adobe is more efficient at converting its revenue into actual profit, suggesting stronger control over its operational costs relative to its top-line performance. While both companies operate in the technology sector, Adobe’s software-centric business model typically allows for higher margins than ADI’s hardware-focused semiconductor operations, which often incur significant R&D and manufacturing costs.

Furthermore, Adobe significantly outperforms Analog Devices in Free Cash Flow (FCF) yield, with an impressive 10.43% compared to ADI’s 2.98%. A higher FCF yield signifies that Adobe generates much more cash from its operations relative to its market capitalization, providing greater flexibility for reinvestment, debt reduction, or shareholder returns. Although both companies report N/A% for Return on Equity (ROE), the net margin and FCF yield firmly establish Adobe as the leader in profitability and cash generation in this comparison. ADI does have a slightly higher EBITDA margin at 45.63% versus ADBE’s 41.02%, indicating strong operational efficiency before accounting for depreciation and amortization, but ADBE’s stronger net margin ultimately reflects better bottom-line performance.

Analyst ratings: ADBE vs ADI

In terms of analyst sentiment, Analog Devices (ADI) currently holds a stronger consensus among financial professionals. A significant 79.6% of analysts covering ADI have issued a ‘Buy’ rating, demonstrating a high level of confidence in the company’s future prospects. Their average price target for ADI stands at $374.42, which represents a potential upside of +19.5% from its current price of $313.42. This strong backing suggests that the market views ADI as a solid investment, particularly for its role in key technological trends.

Conversely, Adobe (ADBE) receives a ‘Buy’ rating from 55.7% of analysts, which, while still a majority, is notably lower than ADI’s consensus. However, the analysts covering ADBE project a more substantial upside potential. The consensus target price for Adobe is $349.65, implying a robust +45.2% increase from its current stock price of $240.88. This suggests that while fewer analysts are recommending a ‘Buy’ for ADBE, those who do see a much greater room for capital appreciation. Therefore, while analysts as a whole ‘prefer’ ADI with higher buy ratings, the individual analyst targets point to ADBE having significantly more potential upside, presenting an interesting dynamic for the adbe vs adi stock comparison 2026.

Should I buy ADBE or ADI stock in 2026?

Deciding whether to buy ADBE or ADI stock in 2026 depends heavily on an investor’s individual strategy and priorities. For growth-oriented investors, Analog Devices (ADI) may present a compelling option due to its higher year-over-year revenue growth of +16.9% compared to Adobe’s +10.5%. ADI’s strong performance in the semiconductor space, powering various high-tech industries, positions it well for continued expansion, attracting those seeking companies with strong top-line momentum.

However, for value investors or those prioritizing strong profitability and free cash flow, Adobe (ADBE) holds a clear advantage. Its P/E ratio of 19.13x is significantly lower than ADI’s 51.05x, and its substantial DCF upside of +37.7% suggests it is currently undervalued relative to its intrinsic worth. Furthermore, ADBE’s superior net margin of 30.0% and impressive FCF yield of 10.43% indicate excellent operational efficiency and robust cash generation capabilities, making it a strong candidate for those looking for fundamentally sound companies at a reasonable price.

Finally, for income-focused investors, Analog Devices (ADI) is the only choice, offering a dividend yield of 1.66%, while Adobe (ADBE) currently does not pay a dividend. Therefore, if generating regular income from your investment is a key objective, ADI is the preferred stock. Ultimately, the best choice in the adbe vs adi fundamentals and valuation depends on whether you prioritize growth, value, or income. This is not investment advice; always conduct your own thorough research before making any investment decisions.

More ADBE and ADI comparisons

ADBE full stock analysis · ADI full stock analysis · All stock comparisons

FAQ: ADBE vs ADI