WallStSmart

Adobe Systems Incorporated (ADBE)vsWPP PLC ADR (WPP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Adobe Systems Incorporated generates 80% more annual revenue ($24.45B vs $13.55B). ADBE leads profitability with a 29.5% profit margin vs -1.6%. 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

WPP

Avoid

32

out of 100

Grade: F

Growth: 2.0Profit: 3.0Value: 5.7Quality: 2.5
Piotroski: 3/9Altman Z: 0.73
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
WPPUndervalued (+75.6%)

Margin of Safety

+75.6%

Fair Value

$75.12

Current Price

$18.97

$56.15 discount

UndervaluedFair: $75.12Overvalued

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

WPP1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

Areas to Watch

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

Trading at 9.0x book value

WPP4 concerns · Avg: 2.5/10
Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.232/10

Expensive relative to growth rate

Return on EquityProfitability
-5.3%2/10

ROE of -5.3% — below average capital efficiency

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 : WPP

The strongest argument for WPP centers on Free Cash Flow.

Bear Case : ADBE

The primary concerns for ADBE are Price/Book.

Bear Case : WPP

The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.13 is elevated, increasing financial risk.

Key Dynamics to Monitor

ADBE profiles as a mature stock while WPP is a turnaround 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 32/100), backed by strong 29.5% margins and 12.0% revenue growth. WPP offers better value entry with a 75.6% margin of safety. Both earn "Strong Buy" and "Avoid" 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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WPP PLC ADR

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.

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