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ADEA vs ACTG
Revenue, margins, valuation, and 5-year total return — side by side.
Specialty Business Services
ADEA vs ACTG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Application | Specialty Business Services |
| Market Cap | $3.04B | $454M |
| Revenue (TTM) | $460M | $215M |
| Net Income (TTM) | $122M | $-18M |
| Gross Margin | 67.8% | 104.9% |
| Operating Margin | 46.3% | -18.7% |
| Forward P/E | 19.1x | 21.4x |
| Total Debt | $436M | $100M |
| Cash & Equiv. | $73M | $307M |
ADEA vs ACTG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Adeia Inc. (ADEA) | 100 | 753.3 | +653.3% |
| Acacia Research Cor… (ACTG) | 100 | 181.7 | +81.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ADEA vs ACTG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
ADEA carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 2 yrs, beta 1.95, yield 0.7%
- 298.3% 10Y total return vs ACTG's 2.5%
- Lower P/E (19.1x vs 21.4x)
ACTG is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 133.2%, EPS growth 161.1%, 3Y rev CAGR 68.9%
- Lower volatility, beta 0.76, Low D/E 17.2%, current ratio 9.18x
- Beta 0.76, current ratio 9.18x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 133.2% revenue growth vs ADEA's 17.9% | |
| Value | Lower P/E (19.1x vs 21.4x) | |
| Quality / Margins | 26.5% margin vs ACTG's -8.5% | |
| Stability / Safety | Beta 0.76 vs ADEA's 1.95, lower leverage | |
| Dividends | 0.7% yield; 2-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +110.8% vs ACTG's +53.3% | |
| Efficiency (ROA) | 11.6% ROA vs ACTG's -2.4%, ROIC 19.0% vs 1.2% |
ADEA vs ACTG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
ADEA vs ACTG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
ADEA leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ADEA is the larger business by revenue, generating $460M annually — 2.1x ACTG's $215M. ADEA is the more profitable business, keeping 26.5% of every revenue dollar as net income compared to ACTG's -8.5%. On growth, ADEA holds the edge at +19.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $460M | $215M |
| EBITDAEarnings before interest/tax | $274M | -$8M |
| Net IncomeAfter-tax profit | $122M | -$18M |
| Free Cash FlowCash after capex | $156M | $52M |
| Gross MarginGross profit ÷ Revenue | +67.8% | +104.9% |
| Operating MarginEBIT ÷ Revenue | +46.3% | -18.7% |
| Net MarginNet income ÷ Revenue | +26.5% | -8.5% |
| FCF MarginFCF ÷ Revenue | +33.8% | +24.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +19.5% | -56.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | -164.0% |
Valuation Metrics
ACTG leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 21.4x trailing earnings, ACTG trades at a 23% valuation discount to ADEA's 27.7x P/E. On an enterprise value basis, ACTG's 5.0x EV/EBITDA is more attractive than ADEA's 12.7x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $3.0B | $454M |
| Enterprise ValueMkt cap + debt − cash | $3.4B | $248M |
| Trailing P/EPrice ÷ TTM EPS | 27.70x | 21.39x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.09x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 12.70x | 4.98x |
| Price / SalesMarket cap ÷ Revenue | 6.85x | 1.59x |
| Price / BookPrice ÷ Book value/share | 6.45x | 0.78x |
| Price / FCFMarket cap ÷ FCF | 20.33x | 7.75x |
Profitability & Efficiency
ADEA leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
ADEA delivers a 27.7% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $-3 for ACTG. ACTG carries lower financial leverage with a 0.17x debt-to-equity ratio, signaling a more conservative balance sheet compared to ADEA's 0.91x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +27.7% | -3.2% |
| ROA (TTM)Return on assets | +11.6% | -2.4% |
| ROICReturn on invested capital | +19.0% | +1.2% |
| ROCEReturn on capital employed | +21.1% | +0.9% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 9 |
| Debt / EquityFinancial leverage | 0.91x | 0.17x |
| Net DebtTotal debt minus cash | $363M | -$206M |
| Cash & Equiv.Liquid assets | $73M | $307M |
| Total DebtShort + long-term debt | $436M | $100M |
| Interest CoverageEBIT ÷ Interest expense | 5.16x | -5.51x |
Total Returns (Dividends Reinvested)
ADEA leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ADEA five years ago would be worth $51,392 today (with dividends reinvested), compared to $7,908 for ACTG. Over the past 12 months, ADEA leads with a +110.8% total return vs ACTG's +53.3%. The 3-year compound annual growth rate (CAGR) favors ADEA at 56.9% vs ACTG's 6.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +56.3% | +25.8% |
| 1-Year ReturnPast 12 months | +110.8% | +53.3% |
| 3-Year ReturnCumulative with dividends | +286.0% | +19.7% |
| 5-Year ReturnCumulative with dividends | +413.9% | -20.9% |
| 10-Year ReturnCumulative with dividends | +298.3% | +2.5% |
| CAGR (3Y)Annualised 3-year return | +56.9% | +6.2% |
Risk & Volatility
ACTG leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ACTG is the less volatile stock with a 0.76 beta — it tends to amplify market swings less than ADEA's 1.95 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ACTG currently trades 89.3% from its 52-week high vs ADEA's 79.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.95x | 0.76x |
| 52-Week HighHighest price in past year | $34.34 | $5.27 |
| 52-Week LowLowest price in past year | $11.61 | $3.03 |
| % of 52W HighCurrent price vs 52-week peak | +79.8% | +89.3% |
| RSI (14)Momentum oscillator 0–100 | 52.7 | 57.4 |
| Avg Volume (50D)Average daily shares traded | 1.4M | 343K |
Analyst Outlook
ADEA leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates ADEA as "Buy" and ACTG as "Buy". ADEA is the only dividend payer here at 0.70% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $30.00 | — |
| # AnalystsCovering analysts | 5 | 7 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | — |
| Dividend StreakConsecutive years of raises | 2 | 0 |
| Dividend / ShareAnnual DPS | $0.19 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.4% | 0.0% |
ADEA leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). ACTG leads in 2 (Valuation Metrics, Risk & Volatility).
ADEA vs ACTG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ADEA or ACTG a better buy right now?
For growth investors, Acacia Research Corporation (ACTG) is the stronger pick with 133.
2% revenue growth year-over-year, versus 17. 9% for Adeia Inc. (ADEA). Acacia Research Corporation (ACTG) offers the better valuation at 21. 4x trailing P/E, making it the more compelling value choice. Analysts rate Adeia Inc. (ADEA) a "Buy" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ADEA or ACTG?
On trailing P/E, Acacia Research Corporation (ACTG) is the cheapest at 21.
4x versus Adeia Inc. at 27. 7x.
03Which is the better long-term investment — ADEA or ACTG?
Over the past 5 years, Adeia Inc.
(ADEA) delivered a total return of +413. 9%, compared to -20. 9% for Acacia Research Corporation (ACTG). Over 10 years, the gap is even starker: ADEA returned +298. 3% versus ACTG's +2. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ADEA or ACTG?
By beta (market sensitivity over 5 years), Acacia Research Corporation (ACTG) is the lower-risk stock at 0.
76β versus Adeia Inc. 's 1. 95β — meaning ADEA is approximately 158% more volatile than ACTG relative to the S&P 500. On balance sheet safety, Acacia Research Corporation (ACTG) carries a lower debt/equity ratio of 17% versus 91% for Adeia Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ADEA or ACTG?
By revenue growth (latest reported year), Acacia Research Corporation (ACTG) is pulling ahead at 133.
2% versus 17. 9% for Adeia Inc. (ADEA). On earnings-per-share growth, the picture is similar: Acacia Research Corporation grew EPS 161. 1% year-over-year, compared to 73. 7% for Adeia Inc.. Over a 3-year CAGR, ACTG leads at 68. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ADEA or ACTG?
Adeia Inc.
(ADEA) is the more profitable company, earning 25. 1% net margin versus 7. 6% for Acacia Research Corporation — meaning it keeps 25. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADEA leads at 47. 2% versus 2. 2% for ACTG. At the gross margin level — before operating expenses — ADEA leads at 87. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Which pays a better dividend — ADEA or ACTG?
In this comparison, ADEA (0.
7% yield) pays a dividend. ACTG does not pay a meaningful dividend and should not be held primarily for income.
08Is ADEA or ACTG better for a retirement portfolio?
For long-horizon retirement investors, Acacia Research Corporation (ACTG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
76)). Adeia Inc. (ADEA) carries a higher beta of 1. 95 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ACTG: +2. 5%, ADEA: +298. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ADEA and ACTG?
These companies operate in different sectors (ADEA (Technology) and ACTG (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
ADEA pays a dividend while ACTG does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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