ADBE vs PGY

Software - Application · market cap $86.7b. Down 44% from 52-week high of $386.60 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.60 — paying under fair value for the growth rate. 33 sell-side analysts rate this a Hold with a mean 1-yr target of $280.66 (implying +29% upside).

Net margin 29% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 63% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 142% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.

Down 44% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.43 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.

Software - Infrastructure · market cap $1.6b. Down 58% from 52-week high of $44.99 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. PEG 0.05 — paying under fair value for the growth rate. 10 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $26.90 (implying +44% upside).

ROE 16% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.

Down 58% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 5.34 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.