COMPARE · Data as of August 21, 2026
ADBE vs MSFT
Verdict: Side-by-side breakdown using the Bull Rankings model. ADBE scored 89.4, MSFT scored 70.6 — ADBE leads.
Compare another set
ADBE
Adobe Inc.
89.4
$275.30 · $109.4B
fundamentals as of
Score gap
18.8
ADBE leads
MSFT
Microsoft Corporation
70.6
$483.24 · $3.6T
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
- CheapestADBE15.7x
- Fastest growthMSFT+17.8%
- Strongest balance sheetMSFT0.29
- Highest qualityADBE92 / 100
- Largest discount to fair valueADBE-23%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
ADBE
stronger →← stronger
MSFT
92
Qualityreturns · margins · balance sheet
87
86
Growthrevenue & earnings expansion
91
90
Valuevaluation vs sector peers
44
ADBE is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
ADBE
MSFT
$10.3bA-
FCF
$67.0bA
+11.5%B
Rev
+17.8%B+
0.61C+
D/E
0.29B
15.7xA-
P/E
27.0xB
0.66A-
PEG
1.57C+
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
ADBE
MSFT
23% below
Price vs fair valuelower is cheaper
175% above
~2%/yr
Growth the price implies10-yr FCF · lower = less priced in
~39%/yr
+15%
1-yr DCF upside
-70%
+30%
5-yr DCF upside
-64%
+53%
10-yr DCF upside
-51%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
ADBE
Why this score
- Buying back stock
- Durable high returns
MSFT
Why this score
- Raising its dividend
- Durable high returns
The companies
ADBEAdobe Inc.
Why now
Software - Application · market cap $109.4b. Down 26% from 52-week high of $370.86 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.66 — paying under fair value for the growth rate. 34 sell-side analysts rate this a Hold with a mean 1-yr target of $270.61 (implying -2% upside).
Moat
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.
Risk
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.
MSFTMicrosoft Corporation
Why now
Software - Infrastructure · market cap $3.6T. 13% off the 52-week high of $553.72. Revenue growing +18%, comfortably above the S&P median. 53 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $569.56 (implying +18% upside).
Moat
Net margin 40% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 30% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $3.6T market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk
P/S 10.8x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Customer concentration — many software businesses depend on a handful of enterprise accounts; the loss of one $10M+ contract can swing the next quarter's growth narrative.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where ADBE and MSFT diverge
On the headline score the gap is 18.8 points in favor of ADBE. They get there differently, though — each leads on a different pillar, so the better pick depends on which you weight.
- ValueADBE 90.4 · MSFT 44.4ADBE +46.0
- GrowthADBE 85.8 · MSFT 90.9MSFT +5.1
- QualityADBE 92.0 · MSFT 87.1ADBE +4.9
Pillars run 0–100 against sector peers, so a score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.