Comprehensive Stock Comparison
Compare Adobe Inc. (ADBE) vs Dropbox, Inc. (DBX) 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 DBX's 1.9% |
| Value | DBX | Lower P/E (8.4x vs 11.2x) |
| Quality / Margins | ADBE | 30.0% net margin vs DBX's 20.2% |
| Stability / Safety | DBX | Beta 0.75 vs ADBE's 0.86 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | DBX | -3.8% vs ADBE's -40.2% |
| Efficiency (ROA) | ADBE | 24.2% ROA vs DBX's 17.9%, ROIC 38.9% vs 33.7% |
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
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.
Dropbox is a cloud storage and content collaboration platform that enables users to store, sync, and share files across devices. It generates revenue primarily through subscription plans — individual, family, and business tiers — with the vast majority coming from paid users who upgrade from the free tier for additional storage and features. Its competitive advantage lies in its seamless cross-platform integration, simple user experience, and strong brand recognition that has created a large installed base of users.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
DBX leads in 3 of 6 categories (Valuation Metrics, Total Returns). ADBE leads in 2 (Financial Metrics, Profitability & Efficiency).
Financial Metrics (TTM)
ADBE is the larger business by revenue, generating $23.8B annually — 9.4x DBX's $2.5B. ADBE is the more profitable business, keeping 30.0% of every revenue dollar as net income compared to DBX's 20.2%. On growth, ADBE holds the edge at +10.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ADBEAdobe Inc. | DBXDropbox, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $23.8B | $2.5B |
| EBITDAEarnings before interest/tax | $9.5B | $812M |
| Net IncomeAfter-tax profit | $7.1B | $508M |
| Free Cash FlowCash after capex | $9.9B | $931M |
| Gross MarginGross profit ÷ Revenue | +89.1% | +80.1% |
| Operating MarginEBIT ÷ Revenue | +36.6% | +27.3% |
| Net MarginNet income ÷ Revenue | +30.0% | +20.2% |
| FCF MarginFCF ÷ Revenue | +41.4% | +36.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.5% | -1.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +17.1% | +26.5% |
Valuation Metrics
At 17.9x trailing earnings, DBX trades at a 16% valuation discount to ADBE's 21.2x P/E. On an enterprise value basis, DBX's 5.8x EV/EBITDA is more attractive than ADBE's 15.0x.
| Metric | ADBEAdobe Inc. | DBXDropbox, Inc. |
|---|---|---|
| Market CapShares × price | $115.7B | $1.9B |
| Enterprise ValueMkt cap + debt − cash | $114.2B | $3.6B |
| Trailing P/EPrice ÷ TTM EPS | 21.23x | 17.85x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.20x | 8.37x |
| PEG RatioP/E ÷ EPS growth rate | 1.37x | — |
| EV / EBITDAEnterprise value multiple | 15.03x | 5.78x |
| Price / SalesMarket cap ÷ Revenue | 5.38x | 0.76x |
| Price / BookPrice ÷ Book value/share | 8.37x | — |
| Price / FCFMarket cap ÷ FCF | 14.79x | 2.22x |
Profitability & Efficiency
| Metric | ADBEAdobe Inc. | DBXDropbox, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +61.3% | — |
| ROA (TTM)Return on assets | +24.2% | +17.9% |
| ROICReturn on invested capital | +38.9% | +33.7% |
| ROCEReturn on capital employed | +32.7% | +25.0% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 0.43x | — |
| Net DebtTotal debt minus cash | -$1.6B | $1.7B |
| Cash & Equiv.Liquid assets | $7.6B | $1.3B |
| Total DebtShort + long-term debt | $6.1B | $3.0B |
| Interest CoverageEBIT ÷ Interest expense | 33.96x | 9.54x |
Total Returns (with DRIP)
A $10,000 investment in DBX five years ago would be worth $10,795 today (with dividends reinvested), compared to $5,588 for ADBE. Over the past 12 months, DBX leads with a -3.8% total return vs ADBE's -40.2%. The 3-year compound annual growth rate (CAGR) favors DBX at 7.0% vs ADBE's -6.8% — a key indicator of consistent wealth creation.
| Metric | ADBEAdobe Inc. | DBXDropbox, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -21.3% | -7.2% |
| 1-Year ReturnPast 12 months | -40.2% | -3.8% |
| 3-Year ReturnCumulative with dividends | -19.0% | +22.5% |
| 5-Year ReturnCumulative with dividends | -44.1% | +7.9% |
| 10-Year ReturnCumulative with dividends | +208.2% | -12.3% |
| CAGR (3Y)Annualised 3-year return | -6.8% | +7.0% |
Risk & Volatility
DBX is the less volatile stock with a 0.75 beta — it tends to amplify market swings less than ADBE's 0.86 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DBX currently trades 77.1% from its 52-week high vs ADBE's 57.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ADBEAdobe Inc. | DBXDropbox, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.86x | 0.75x |
| 52-Week HighHighest price in past year | $453.26 | $32.40 |
| 52-Week LowLowest price in past year | $244.28 | $23.63 |
| % of 52W HighCurrent price vs 52-week peak | +57.9% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 36.5 | 45.0 |
| Avg Volume (50D)Average daily shares traded | 4.2M | 3.3M |
Analyst Outlook
Wall Street rates ADBE as "Buy" and DBX as "Buy". Consensus price targets imply 43.3% upside for ADBE (target: $376) vs 6.0% for DBX (target: $27).
| Metric | ADBEAdobe Inc. | DBXDropbox, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $375.94 | $26.50 |
| # AnalystsCovering analysts | 61 | 15 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +8.2% | +64.1% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Adobe Inc. (ADBE) | 100 | 81.43 | -18.6% |
| Dropbox, Inc. (DBX) | 100 | 133.02 | +33.0% |
Dropbox, Inc. (DBX) returned +8% over 5 years vs Adobe Inc. (ADBE)'s -44%. A $10,000 investment in DBX 5 years ago would be worth $10,795 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Adobe Inc. (ADBE) | $4.8B | $21.5B | +348.4% |
| Dropbox, Inc. (DBX) | $604M | $2.5B | +322.0% |
Adobe Inc.'s revenue grew from $4.8B (2015) to $21.5B (2024) — a 18.1% CAGR. Dropbox, Inc.'s revenue grew from $604M (2015) to $2.5B (2024) — a 17.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Adobe Inc. (ADBE) | 13.1% | 25.9% | +96.9% |
| Dropbox, Inc. (DBX) | -54.0% | 17.7% | +132.9% |
Adobe Inc.'s net margin went from 13% (2015) to 26% (2024). Dropbox, Inc.'s net margin went from -54% (2015) to 18% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Adobe Inc. (ADBE) | 51.8 | 36 | -30.5% |
| Dropbox, Inc. (DBX) | 28.9 | 21.5 | -25.6% |
Adobe Inc. has traded in a 33x–57x P/E range over 8 years; current trailing P/E is ~21x. Dropbox, Inc. has traded in a 15x–29x P/E range over 4 years; current trailing P/E is ~18x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Adobe Inc. (ADBE) | 1.24 | 12.36 | +896.8% |
| Dropbox, Inc. (DBX) | -1.74 | 1.4 | +180.5% |
Adobe Inc.'s EPS grew from $1.24 (2015) to $12.36 (2024) — a 29% CAGR. Dropbox, Inc.'s EPS grew from $-1.74 (2015) to $1.40 (2024).
Chart 6Free Cash Flow — 5 Years
Adobe Inc. generated $8B FCF in 2024 (+14% vs 2021). Dropbox, Inc. generated $872M FCF in 2024 (+24% vs 2021).
ADBE vs DBX: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ADBE or DBX a better buy right now?
Dropbox, Inc. (DBX) offers the better valuation at 17.9x trailing P/E (8.4x 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 — ADBE or DBX?
On trailing P/E, Dropbox, Inc. (DBX) is the cheapest at 17.9x versus Adobe Inc. at 21.2x. On forward P/E, Dropbox, Inc. is actually cheaper at 8.4x.
03Which is the better long-term investment — ADBE or DBX?
Over the past 5 years, Dropbox, Inc. (DBX) delivered a total return of +7.9%, compared to -44.1% for Adobe Inc. (ADBE). A $10,000 investment in DBX five years ago would be worth approximately $11K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ADBE returned +208.2% versus DBX's -12.3%. 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 — ADBE or DBX?
By beta (market sensitivity over 5 years), Dropbox, Inc. (DBX) is the lower-risk stock at 0.75β versus Adobe Inc.'s 0.86β — meaning ADBE is approximately 14% more volatile than DBX relative to the S&P 500.
05Which has better profit margins — ADBE or DBX?
Adobe Inc. (ADBE) is the more profitable company, earning 25.9% net margin versus 17.7% for Dropbox, Inc. — 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 19.1% for DBX. 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 ADBE or DBX more undervalued right now?
On forward earnings alone, Dropbox, Inc. (DBX) trades at 8.4x forward P/E versus 11.2x for Adobe Inc. — 2.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADBE: 43.3% to $375.94.
07Which pays a better dividend — ADBE or DBX?
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 ADBE or DBX 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). Both have compounded well over 10 years (ADBE: +208.2%, DBX: -12.3%), 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 ADBE and DBX?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: ADBE is a mid-cap quality compounder stock; DBX is a small-cap deep-value stock. 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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