Comprehensive Stock Comparison
Compare Oracle Corporation (ORCL) vs Adobe Inc. (ADBE) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ADBE | 10.8% revenue growth vs ORCL's 8.4% |
| Value | ADBE | Lower P/E (11.2x vs 19.7x), PEG 0.72 vs 2.78 |
| Quality / Margins | ADBE | 30.0% net margin vs ORCL's 25.3% |
| Stability / Safety | ADBE | Beta 0.86 vs ORCL's 1.40, lower leverage |
| Dividends | ORCL | 1.1% yield; 18-year raise streak; ADBE pays no meaningful dividend |
| Momentum (1Y) | ORCL | -11.2% vs ADBE's -40.2% |
| Efficiency (ROA) | ADBE | 24.2% ROA vs ORCL's 7.5%, ROIC 38.9% vs 12.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Oracle is a global enterprise software and cloud computing company that provides database management systems, enterprise applications, and cloud infrastructure services. It generates revenue primarily through cloud services and license support (~70% of total revenue) and cloud license and on-premise license sales (~20%), with hardware and services making up the remainder. The company's key moat is its entrenched position in enterprise database software—particularly with its flagship Oracle Database—which creates significant switching costs and lock-in for large corporate customers.
Adobe is a software company that provides creative, document, and customer experience management tools through cloud-based subscription services. It generates revenue primarily from its Digital Media segment — including Creative Cloud and Document Cloud subscriptions — which contributes about 70% of total revenue, with the remaining 30% coming from its Digital Experience platform for marketers and businesses. Adobe's competitive moat lies in its industry-standard creative software ecosystem — Photoshop, Illustrator, and Acrobat are deeply embedded in professional workflows — creating high switching costs and network effects.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ADBE leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). ORCL leads in 2 (Total Returns, Analyst Outlook).
Financial Metrics (TTM)
ORCL is the larger business by revenue, generating $61.0B annually — 2.6x ADBE's $23.8B. Profitability is closely matched — net margins range from 30.0% (ADBE) to 25.3% (ORCL). On growth, ORCL holds the edge at +14.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ORCLOracle Corporation | ADBEAdobe Inc. |
|---|---|---|
| RevenueTrailing 12 months | $61.0B | $23.8B |
| EBITDAEarnings before interest/tax | $22.6B | $9.5B |
| Net IncomeAfter-tax profit | $15.4B | $7.1B |
| Free Cash FlowCash after capex | -$13.2B | $9.9B |
| Gross MarginGross profit ÷ Revenue | +70.7% | +89.1% |
| Operating MarginEBIT ÷ Revenue | +30.3% | +36.6% |
| Net MarginNet income ÷ Revenue | +25.3% | +30.0% |
| FCF MarginFCF ÷ Revenue | -21.6% | +41.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.2% | +10.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +90.9% | +17.1% |
Valuation Metrics
At 21.2x trailing earnings, ADBE trades at a 37% valuation discount to ORCL's 33.5x P/E. Adjusting for growth (PEG ratio), ADBE offers better value at 1.37x vs ORCL's 4.72x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ORCLOracle Corporation | ADBEAdobe Inc. |
|---|---|---|
| Market CapShares × price | $408.1B | $115.7B |
| Enterprise ValueMkt cap + debt − cash | $501.5B | $114.2B |
| Trailing P/EPrice ÷ TTM EPS | 33.50x | 21.23x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.71x | 11.20x |
| PEG RatioP/E ÷ EPS growth rate | 4.72x | 1.37x |
| EV / EBITDAEnterprise value multiple | 21.02x | 15.03x |
| Price / SalesMarket cap ÷ Revenue | 7.11x | 5.38x |
| Price / BookPrice ÷ Book value/share | 19.87x | 8.37x |
| Price / FCFMarket cap ÷ FCF | — | 14.79x |
Profitability & Efficiency
ADBE delivers a 61.3% return on equity — every $100 of shareholder capital generates $61 in annual profit, vs $51 for ORCL. ADBE carries lower financial leverage with a 0.43x debt-to-equity ratio, signaling a more conservative balance sheet compared to ORCL's 4.96x.
| Metric | ORCLOracle Corporation | ADBEAdobe Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +50.6% | +61.3% |
| ROA (TTM)Return on assets | +7.5% | +24.2% |
| ROICReturn on invested capital | +12.8% | +38.9% |
| ROCEReturn on capital employed | +14.4% | +32.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 4.96x | 0.43x |
| Net DebtTotal debt minus cash | $93.3B | -$1.6B |
| Cash & Equiv.Liquid assets | $10.8B | $7.6B |
| Total DebtShort + long-term debt | $104.1B | $6.1B |
| Interest CoverageEBIT ÷ Interest expense | 3.24x | 33.96x |
Total Returns (with DRIP)
A $10,000 investment in ORCL five years ago would be worth $23,146 today (with dividends reinvested), compared to $5,588 for ADBE. Over the past 12 months, ORCL leads with a -11.2% total return vs ADBE's -40.2%. The 3-year compound annual growth rate (CAGR) favors ORCL at 19.9% vs ADBE's -6.8% — a key indicator of consistent wealth creation.
| Metric | ORCLOracle Corporation | ADBEAdobe Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -25.5% | -21.3% |
| 1-Year ReturnPast 12 months | -11.2% | -40.2% |
| 3-Year ReturnCumulative with dividends | +72.3% | -19.0% |
| 5-Year ReturnCumulative with dividends | +131.5% | -44.1% |
| 10-Year ReturnCumulative with dividends | +327.4% | +208.2% |
| CAGR (3Y)Annualised 3-year return | +19.9% | -6.8% |
Risk & Volatility
ADBE is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than ORCL's 1.40 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ADBE currently trades 57.9% from its 52-week high vs ORCL's 42.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ORCLOracle Corporation | ADBEAdobe Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.40x | 0.86x |
| 52-Week HighHighest price in past year | $345.72 | $453.26 |
| 52-Week LowLowest price in past year | $118.86 | $244.28 |
| % of 52W HighCurrent price vs 52-week peak | +42.1% | +57.9% |
| RSI (14)Momentum oscillator 0–100 | 41.2 | 36.5 |
| Avg Volume (50D)Average daily shares traded | 20.9M | 4.2M |
Analyst Outlook
Wall Street rates ORCL as "Buy" and ADBE as "Buy". Consensus price targets imply 103.5% upside for ORCL (target: $296) vs 43.3% for ADBE (target: $376). ORCL is the only dividend payer here at 1.14% yield — a key consideration for income-focused portfolios.
| Metric | ORCLOracle Corporation | ADBEAdobe Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $295.85 | $375.94 |
| # AnalystsCovering analysts | 86 | 61 |
| Dividend YieldAnnual dividend ÷ price | +1.1% | — |
| Dividend StreakConsecutive years of raises | 18 | 0 |
| Dividend / ShareAnnual DPS | $1.65 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +8.2% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Oracle Corporation (ORCL) | 100 | 314.46 | +214.5% |
| Adobe Inc. (ADBE) | 100 | 81.43 | -18.6% |
Oracle Corporation (ORCL) returned +131% over 5 years vs Adobe Inc. (ADBE)'s -44%. A $10,000 investment in ORCL 5 years ago would be worth $23,146 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Oracle Corporation (ORCL) | $37.0B | $57.4B | +54.9% |
| Adobe Inc. (ADBE) | $5.9B | $21.5B | +267.3% |
Oracle Corporation's revenue grew from $37.0B (2016) to $57.4B (2025) — a 5.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Oracle Corporation (ORCL) | 24.0% | 21.7% | -9.8% |
| Adobe Inc. (ADBE) | 20.0% | 25.9% | +29.5% |
Oracle Corporation's net margin went from 24% (2016) to 22% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Oracle Corporation (ORCL) | 21.4 | 44.9 | +109.8% |
| Adobe Inc. (ADBE) | 51.8 | 36 | -30.5% |
Oracle Corporation has traded in a 18x–53x P/E range over 9 years; current trailing P/E is ~34x. Adobe Inc. has traded in a 33x–57x P/E range over 8 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Oracle Corporation (ORCL) | 2.07 | 4.34 | +109.7% |
| Adobe Inc. (ADBE) | 2.32 | 12.36 | +432.8% |
Oracle Corporation's EPS grew from $2.07 (2016) to $4.34 (2025) — a 9% CAGR.
Chart 6Free Cash Flow — 5 Years
Oracle Corporation generated $-394M FCF in 2025 (-103% vs 2021). Adobe Inc. generated $8B FCF in 2024 (+14% vs 2021).
ORCL vs ADBE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ORCL or ADBE a better buy right now?
Adobe Inc. (ADBE) offers the better valuation at 21.2x trailing P/E (11.2x forward), making it the more compelling value choice. Analysts rate Oracle Corporation (ORCL) a "Buy" — based on 86 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 — ORCL or ADBE?
On trailing P/E, Adobe Inc. (ADBE) is the cheapest at 21.2x versus Oracle Corporation at 33.5x. On forward P/E, Adobe Inc. is actually cheaper at 11.2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Adobe Inc. wins at 0.72x versus Oracle Corporation's 2.78x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — ORCL or ADBE?
Over the past 5 years, Oracle Corporation (ORCL) delivered a total return of +131.5%, compared to -44.1% for Adobe Inc. (ADBE). A $10,000 investment in ORCL five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ORCL returned +327.4% versus ADBE's +208.2%. 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 — ORCL or ADBE?
By beta (market sensitivity over 5 years), Adobe Inc. (ADBE) is the lower-risk stock at 0.86β versus Oracle Corporation's 1.40β — meaning ORCL is approximately 64% more volatile than ADBE relative to the S&P 500. On balance sheet safety, Adobe Inc. (ADBE) carries a lower debt/equity ratio of 43% versus 5% for Oracle Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — ORCL or ADBE?
Adobe Inc. (ADBE) is the more profitable company, earning 25.9% net margin versus 21.7% for Oracle Corporation — meaning it keeps 25.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADBE leads at 31.3% versus 30.8% for ORCL. At the gross margin level — before operating expenses — ADBE leads at 89.0%, 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.
06Is ORCL or ADBE more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Adobe Inc. (ADBE) is the more undervalued stock at a PEG of 0.72x versus Oracle Corporation's 2.78x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Adobe Inc. (ADBE) trades at 11.2x forward P/E versus 19.7x for Oracle Corporation — 8.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ORCL: 103.5% to $295.85.
07Which pays a better dividend — ORCL or ADBE?
In this comparison, ORCL (1.1% yield) pays a dividend. ADBE does not pay a meaningful dividend and should not be held primarily for income.
08Is ORCL or ADBE better for a retirement portfolio?
For long-horizon retirement investors, Oracle Corporation (ORCL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.1% yield, +327.4% 10Y return). Both have compounded well over 10 years (ORCL: +327.4%, ADBE: +208.2%), 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 ORCL and ADBE?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. ORCL pays a dividend while ADBE 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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