Comprehensive Stock Comparison
Compare Palantir Technologies Inc. (PLTR) 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 | PLTR | 56.2% revenue growth vs ADBE's 10.8% |
| Value | ADBE | Lower P/E (11.2x vs 106.7x) |
| Quality / Margins | PLTR | 36.3% net margin vs ADBE's 30.0% |
| Stability / Safety | ADBE | Beta 0.86 vs PLTR's 1.97 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | PLTR | +61.6% vs ADBE's -40.2% |
| Efficiency (ROA) | ADBE | 24.2% ROA vs PLTR's 18.3%, ROIC 38.9% vs 22.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Palantir Technologies builds and operates advanced data analytics platforms that help government agencies and large enterprises integrate, analyze, and act on complex data. It generates revenue primarily through government contracts—particularly with defense and intelligence agencies—and commercial enterprise software subscriptions, with government work historically representing the majority of its business. The company's key advantage lies in its deep expertise in handling sensitive, classified data and its proprietary software platforms that have been battle-tested in national security applications for nearly two decades.
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
PLTR leads in 2 of 6 categories (Financial Metrics, Total Returns). ADBE leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
ADBE is the larger business by revenue, generating $23.8B annually — 5.3x PLTR's $4.5B. PLTR is the more profitable business, keeping 36.3% of every revenue dollar as net income compared to ADBE's 30.0%. On growth, PLTR holds the edge at +70.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PLTRPalantir Technolo… | ADBEAdobe Inc. |
|---|---|---|
| RevenueTrailing 12 months | $4.5B | $23.8B |
| EBITDAEarnings before interest/tax | $1.4B | $9.5B |
| Net IncomeAfter-tax profit | $1.6B | $7.1B |
| Free Cash FlowCash after capex | $2.1B | $9.9B |
| Gross MarginGross profit ÷ Revenue | +82.4% | +89.1% |
| Operating MarginEBIT ÷ Revenue | +31.6% | +36.6% |
| Net MarginNet income ÷ Revenue | +36.3% | +30.0% |
| FCF MarginFCF ÷ Revenue | +47.0% | +41.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +70.0% | +10.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +6.7% | +17.1% |
Valuation Metrics
At 21.2x trailing earnings, ADBE trades at a 90% valuation discount to PLTR's 217.8x P/E. On an enterprise value basis, ADBE's 15.0x EV/EBITDA is more attractive than PLTR's 216.8x.
| Metric | PLTRPalantir Technolo… | ADBEAdobe Inc. |
|---|---|---|
| Market CapShares × price | $313.4B | $115.7B |
| Enterprise ValueMkt cap + debt − cash | $312.2B | $114.2B |
| Trailing P/EPrice ÷ TTM EPS | 217.76x | 21.23x |
| Forward P/EPrice ÷ next-FY EPS est. | 106.66x | 11.20x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.37x |
| EV / EBITDAEnterprise value multiple | 216.78x | 15.03x |
| Price / SalesMarket cap ÷ Revenue | 70.02x | 5.38x |
| Price / BookPrice ÷ Book value/share | 47.00x | 8.37x |
| Price / FCFMarket cap ÷ FCF | 149.19x | 14.79x |
Profitability & Efficiency
ADBE delivers a 61.3% return on equity — every $100 of shareholder capital generates $61 in annual profit, vs $22 for PLTR. PLTR carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to ADBE's 0.43x. On the Piotroski fundamental quality scale (0–9), PLTR scores 8/9 vs ADBE's 6/9, reflecting strong financial health.
| Metric | PLTRPalantir Technolo… | ADBEAdobe Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +21.7% | +61.3% |
| ROA (TTM)Return on assets | +18.3% | +24.2% |
| ROICReturn on invested capital | +22.3% | +38.9% |
| ROCEReturn on capital employed | +21.6% | +32.7% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.03x | 0.43x |
| Net DebtTotal debt minus cash | -$1.2B | -$1.6B |
| Cash & Equiv.Liquid assets | $1.4B | $7.6B |
| Total DebtShort + long-term debt | $229M | $6.1B |
| Interest CoverageEBIT ÷ Interest expense | — | 33.96x |
Total Returns (with DRIP)
A $10,000 investment in PLTR five years ago would be worth $55,296 today (with dividends reinvested), compared to $5,588 for ADBE. Over the past 12 months, PLTR leads with a +61.6% total return vs ADBE's -40.2%. The 3-year compound annual growth rate (CAGR) favors PLTR at 159.6% vs ADBE's -6.8% — a key indicator of consistent wealth creation.
| Metric | PLTRPalantir Technolo… | ADBEAdobe Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -18.3% | -21.3% |
| 1-Year ReturnPast 12 months | +61.6% | -40.2% |
| 3-Year ReturnCumulative with dividends | +1649.9% | -19.0% |
| 5-Year ReturnCumulative with dividends | +453.0% | -44.1% |
| 10-Year ReturnCumulative with dividends | +1344.1% | +208.2% |
| CAGR (3Y)Annualised 3-year return | +159.6% | -6.8% |
Risk & Volatility
ADBE is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than PLTR's 1.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PLTR currently trades 66.1% from its 52-week high vs ADBE's 57.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PLTRPalantir Technolo… | ADBEAdobe Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.97x | 0.86x |
| 52-Week HighHighest price in past year | $207.52 | $453.26 |
| 52-Week LowLowest price in past year | $66.12 | $244.28 |
| % of 52W HighCurrent price vs 52-week peak | +66.1% | +57.9% |
| RSI (14)Momentum oscillator 0–100 | 42.3 | 36.5 |
| Avg Volume (50D)Average daily shares traded | 39.1M | 4.2M |
Analyst Outlook
Wall Street rates PLTR as "Hold" and ADBE as "Buy". Consensus price targets imply 44.8% upside for PLTR (target: $199) vs 43.3% for ADBE (target: $376).
| Metric | PLTRPalantir Technolo… | ADBEAdobe Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $198.71 | $375.94 |
| # AnalystsCovering analysts | 24 | 61 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +8.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Sep 20 | Feb 26 | Change |
|---|---|---|---|
| Palantir Technologi… (PLTR) | 100 | 1,555.37 | +1455.4% |
| Adobe Inc. (ADBE) | 100 | 58.73 | -41.3% |
Palantir Technologi… (PLTR) returned +453% over 5 years vs Adobe Inc. (ADBE)'s -44%. A $10,000 investment in PLTR 5 years ago would be worth $55,296 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Palantir Technologi… (PLTR) | $595M | $4.5B | +651.7% |
| Adobe Inc. (ADBE) | $5.9B | $21.5B | +267.3% |
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Palantir Technologi… (PLTR) | -97.4% | 36.3% | +137.3% |
| Adobe Inc. (ADBE) | 20.0% | 25.9% | +29.5% |
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Palantir Technologi… (PLTR) | 188.1 | 282.1 | +50.0% |
| Adobe Inc. (ADBE) | 51.8 | 36 | -30.5% |
Palantir Technologies Inc. has traded in a 188x–398x P/E range over 3 years; current trailing P/E is ~218x. 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 |
|---|---|---|---|
| Palantir Technologi… (PLTR) | -0.89 | 0.63 | +170.8% |
| Adobe Inc. (ADBE) | 2.32 | 12.36 | +432.8% |
Chart 6Free Cash Flow — 5 Years
Palantir Technologies Inc. generated $2B FCF in 2025 (+554% vs 2021). Adobe Inc. generated $8B FCF in 2024 (+14% vs 2021).
PLTR vs ADBE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PLTR 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 Adobe Inc. (ADBE) a "Buy" — based on 61 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 — PLTR or ADBE?
On trailing P/E, Adobe Inc. (ADBE) is the cheapest at 21.2x versus Palantir Technologies Inc. at 217.8x. On forward P/E, Adobe Inc. is actually cheaper at 11.2x.
03Which is the better long-term investment — PLTR or ADBE?
Over the past 5 years, Palantir Technologies Inc. (PLTR) delivered a total return of +453.0%, compared to -44.1% for Adobe Inc. (ADBE). A $10,000 investment in PLTR five years ago would be worth approximately $55K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PLTR returned +1344% 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 — PLTR or ADBE?
By beta (market sensitivity over 5 years), Adobe Inc. (ADBE) is the lower-risk stock at 0.86β versus Palantir Technologies Inc.'s 1.97β — meaning PLTR is approximately 130% more volatile than ADBE relative to the S&P 500. On balance sheet safety, Palantir Technologies Inc. (PLTR) carries a lower debt/equity ratio of 3% versus 43% for Adobe Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — PLTR or ADBE?
Palantir Technologies Inc. (PLTR) is the more profitable company, earning 36.3% net margin versus 25.9% for Adobe Inc. — meaning it keeps 36.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PLTR leads at 31.6% versus 31.3% for ADBE. 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 PLTR or ADBE more undervalued right now?
On forward earnings alone, Adobe Inc. (ADBE) trades at 11.2x forward P/E versus 106.7x for Palantir Technologies Inc. — 95.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PLTR: 44.8% to $198.71.
07Which pays a better dividend — PLTR or ADBE?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is PLTR or ADBE better for a retirement portfolio?
For long-horizon retirement investors, Adobe Inc. (ADBE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.86), +208.2% 10Y return). Palantir Technologies Inc. (PLTR) carries a higher beta of 1.97 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ADBE: +208.2%, PLTR: +1344%), 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 PLTR 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. 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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