ADBE vs HD: Which Is the Better Buy?
Side-by-side comparison of Adobe Inc. and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-16.
Adobe Inc. · Technology
$248.16
+163.1% upside to fair value
High Conviction
Grade B
VS
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
ADBE has more upside to fair value
(+163.1%).
ADBE trades at a lower forward P/E
(14.1x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ADBE |
HD |
| Current Price |
$248.16 |
$337.34 |
| Fair Value Estimate |
$653.00 |
$378.00 |
| Upside to Fair Value |
+163.1%
|
+12.1%
|
| Market Cap |
$101.2B |
$336.0B |
| Forward P/E |
14.1x
|
23.0x
|
| EV / EBITDA |
—
|
18.1x
|
| Price / Sales |
4.1x
|
2.3x
|
| Price / FCF |
9.8x
|
29.7x
|
| Revenue Growth YoY |
+3.3%
|
+3.2%
|
| Gross Margin |
89.1%
|
33.3%
|
| Operating Margin |
36.6%
|
12.7%
|
| Return on Equity |
62.3%
|
110.5%
|
| Dividend Yield |
— |
2.44% |
| FCF Yield |
10.2%
|
3.37%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Adobe Inc. develops industry-leading creative software, digital experience platforms, and publishing tools, powering digital content creation and marketing for professionals worldwide. The business excels with high gross margins above 89%, a sticky subscription model driving recurring revenue over $17B ARR, and dominant moats in digital media, though it faces intensifying AI competition and slowi…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
Accumulation Zones
| Metric |
ADBE |
HD |
| Zone Low |
$490.00 |
$285.00 |
| Zone High |
$555.00 |
$320.00 |
| In Buy Zone? |
Yes
|
No
|