Adobe (NASDAQ:ADBE – Get Free Report) and Constellation Software (OTCMKTS:CNSWF – Get Free Report) are both large-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
Earnings and Valuation
This table compares Adobe and Constellation Software”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adobe | $23.77 billion | 4.31 | $7.13 billion | $17.92 | 14.38 |
| Constellation Software | $11.62 billion | 3.74 | $512.00 million | $45.33 | 45.23 |
Institutional & Insider Ownership
81.8% of Adobe shares are owned by institutional investors. 0.2% of Adobe shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Adobe and Constellation Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adobe | 28.05% | 65.65% | 25.54% |
| Constellation Software | 7.60% | 47.37% | 12.80% |
Analyst Ratings
This is a summary of current recommendations and price targets for Adobe and Constellation Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adobe | 5 | 21 | 7 | 0 | 2.06 |
| Constellation Software | 0 | 1 | 6 | 1 | 3.00 |
Adobe presently has a consensus target price of $282.68, suggesting a potential upside of 9.67%. Given Adobe’s higher probable upside, analysts plainly believe Adobe is more favorable than Constellation Software.
Risk and Volatility
Adobe has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Constellation Software has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Summary
Adobe beats Constellation Software on 11 of the 15 factors compared between the two stocks.
About Adobe
Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, students, workers, marketers, educators, enthusiasts, and communicators. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. It also provides consulting, technical support, and learning services. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.
About Constellation Software
Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.
Receive News & Ratings for Adobe Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Adobe and related companies with MarketBeat.com's FREE daily email newsletter.
