BOX (BOX) vs. Adobe Systems (NASDAQ:ADBE) Financial Review

BOX (NYSE: BOX) and Adobe Systems (NASDAQ:ADBE) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Analyst Recommendations

This is a summary of current recommendations for BOX and Adobe Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BOX 0 2 12 0 2.86
Adobe Systems 0 7 24 0 2.77

BOX presently has a consensus price target of $24.00, indicating a potential upside of 17.07%. Adobe Systems has a consensus price target of $196.97, indicating a potential upside of 2.51%. Given BOX’s stronger consensus rating and higher possible upside, analysts clearly believe BOX is more favorable than Adobe Systems.

Profitability

This table compares BOX and Adobe Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BOX -33.20% -313.90% -33.54%
Adobe Systems 23.20% 22.15% 12.93%

Earnings & Valuation

This table compares BOX and Adobe Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BOX $398.61 million 7.00 -$151.78 million ($1.20) -17.08
Adobe Systems $7.30 billion 12.94 $1.69 billion $3.39 56.68

Adobe Systems has higher revenue and earnings than BOX. BOX is trading at a lower price-to-earnings ratio than Adobe Systems, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

BOX has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Adobe Systems has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Institutional and Insider Ownership

62.0% of BOX shares are held by institutional investors. Comparatively, 86.8% of Adobe Systems shares are held by institutional investors. 20.6% of BOX shares are held by insiders. Comparatively, 0.4% of Adobe Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Adobe Systems beats BOX on 10 of the 14 factors compared between the two stocks.

About BOX

Box, Inc. provides an enterprise content management platform that enables organizations of all sizes to manage enterprise content while allowing access and sharing of this content from anywhere, on any device. With the Company’s Software-as-a-Service (SaaS) cloud-based platform, users can collaborate on content both internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security and compliance features to comply with internal policies and industry regulations. Its platform enables people to view, share and collaborate on content, across various file formats and media types. The software integrates with enterprise business applications, and is compatible with various application environments, operating systems and devices, ensuring that workers have access to their business content. It offers individuals a free basic version of the Box platform that allows them to experience its solution.

About Adobe Systems

Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences. It operates through three segments: Digital Media, Digital Marketing, and Print and Publishing. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content. Its Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Its Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to its legacy type and original equipment manufacturer (OEM) printing businesses.

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