Head to Head Analysis: Adobe Systems (ADBE) & ANSYS (ANSS)

Adobe Systems (NASDAQ: ADBE) and ANSYS (NASDAQ:ANSS) are both large-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Adobe Systems 23.20% 22.57% 13.19%
ANSYS 26.01% 13.67% 10.86%

Insider & Institutional Ownership

87.1% of Adobe Systems shares are owned by institutional investors. Comparatively, 96.7% of ANSYS shares are owned by institutional investors. 0.4% of Adobe Systems shares are owned by insiders. Comparatively, 1.3% of ANSYS shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Adobe Systems and ANSYS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adobe Systems $7.30 billion 11.78 $1.69 billion $3.39 51.46
ANSYS $988.47 million 12.57 $265.63 million $3.18 46.03

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

Analyst Recommendations

This is a summary of current ratings and target prices for Adobe Systems and ANSYS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adobe Systems 0 7 22 0 2.76
ANSYS 2 9 1 0 1.92

Adobe Systems currently has a consensus target price of $184.21, indicating a potential upside of 5.60%. ANSYS has a consensus target price of $124.90, indicating a potential downside of 14.68%. Given Adobe Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Adobe Systems is more favorable than ANSYS.

Risk and Volatility

Adobe Systems has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Summary

Adobe Systems beats ANSYS on 9 of the 14 factors compared between the two stocks.

Adobe Systems Company Profile

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.

ANSYS Company Profile

ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.

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