WallStSmart

Adobe Systems Incorporated (ADBE)vsPayPal Holdings Inc (PYPL)

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Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 38% more annual revenue ($33.73B vs $24.45B). ADBE leads profitability with a 29.5% profit margin vs 15.0%. ADBE appears more attractively valued with a PEG of 0.72. ADBE earns a higher WallStSmart Score of 74/100 (B).

ADBE

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 8.7Quality: 6.0
Piotroski: 4/9Altman Z: 4.35

PYPL

Strong Buy

70

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADBEUndervalued (+41.5%)

Margin of Safety

+41.5%

Fair Value

$438.58

Current Price

$253.04

$185.54 discount

UndervaluedFair: $438.58Overvalued

Intrinsic value data unavailable for PYPL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADBE6 strengths · Avg: 9.3/10
Return on EquityProfitability
58.8%10/10

Every $100 of equity generates 59 in profit

Operating MarginProfitability
38.8%10/10

Strong operational efficiency at 38.8%

Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Market CapQuality
$103.68B9/10

Large-cap with strong market position

Profit MarginProfitability
29.5%9/10

Keeps 30 of every $100 in revenue as profit

PEG RatioValuation
0.728/10

Growing faster than its price suggests

PYPL4 strengths · Avg: 8.8/10
P/E RatioValuation
8.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.1%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

ADBE1 concerns · Avg: 4.0/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

PYPL2 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : ADBE

The strongest argument for ADBE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 29.5% and operating margin at 38.8%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : PYPL

The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.91 suggests the stock is reasonably priced for its growth.

Bear Case : ADBE

The primary concerns for ADBE are Price/Book.

Bear Case : PYPL

The primary concerns for PYPL are Altman Z-Score, EPS Growth.

Key Dynamics to Monitor

ADBE profiles as a mature stock while PYPL is a value play — different risk/reward profiles.

ADBE carries more volatility with a beta of 1.42 — expect wider price swings.

ADBE is growing revenue faster at 12.0% — sustainability is the question.

ADBE generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

ADBE scores higher overall (74/100 vs 70/100), backed by strong 29.5% margins and 12.0% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Adobe Systems Incorporated

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

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PayPal Holdings Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.

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