ADBE vs PYPL: Which Is the Better Buy?
Side-by-side comparison of Adobe Inc. and PayPal Holdings, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-05.
Adobe Inc. · Technology
$248.16
+163.1% upside to fair value
High Conviction
Grade B
VS
PayPal Holdings, Inc. · Financial Services
$50.39
+110.0% upside to fair value
Grade B
QuantHub Verdict
ADBE has more upside to fair value
(+163.1%).
PYPL trades at a lower forward P/E
(9.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ADBE |
PYPL |
| Current Price |
$248.16 |
$50.39 |
| Fair Value Estimate |
$653.00 |
$105.84 |
| Upside to Fair Value |
+163.1%
|
+110.0%
|
| Market Cap |
$101.2B |
$45.3B |
| Forward P/E |
14.1x
|
9.0x
|
| EV / EBITDA |
—
|
6.1x
|
| Price / Sales |
4.1x
|
1.4x
|
| Price / FCF |
9.8x
|
8.2x
|
| Revenue Growth YoY |
+3.3%
|
+3.7%
|
| Gross Margin |
89.1%
|
46.6%
|
| Operating Margin |
36.6%
|
18.3%
|
| Return on Equity |
62.3%
|
25.9%
|
| Dividend Yield |
— |
0% |
| FCF Yield |
10.2%
|
12.27%
|
| Analyst Consensus |
Hold
|
Sell
|
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…
PayPal Holdings, Inc. operates as a leading digital payments platform offering transaction processing and value-added financial services such as consumer credit and BNPL products. The business quality is medium due to a narrowing competitive moat amid increasing pressure from big tech competitors and slowing growth in its core branded checkout segment. The stock is currently mispriced and cheap, …
Accumulation Zones
| Metric |
ADBE |
PYPL |
| Zone Low |
$490.00 |
$79.38 |
| Zone High |
$555.00 |
$89.96 |
| In Buy Zone? |
Yes
|
Yes
|