CommVault Systems (NASDAQ:CVLT) & Adobe (NASDAQ:ADBE) Head-To-Head Review

Adobe (NASDAQ:ADBE) and CommVault Systems (NASDAQ:CVLT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adobe	30.01%	57.54%	24.79%
CommVault Systems	7.32%	31.53%	7.16%

Risk and Volatility

Adobe has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adobe	$23.18 billion	5.64	$5.56 billion	$16.05	19.46
CommVault Systems	$1.10 billion	4.74	$76.11 million	$1.78	66.12

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

Insider and Institutional Ownership

81.8% of Adobe shares are owned by institutional investors. Comparatively, 93.5% of CommVault Systems shares are owned by institutional investors. 0.2% of Adobe shares are owned by company insiders. Comparatively, 1.0% of CommVault Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Adobe and CommVault Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adobe	3	11	14	1	2.45
CommVault Systems	1	3	9	1	2.71

Adobe currently has a consensus target price of $428.96, suggesting a potential upside of 37.31%. CommVault Systems has a consensus target price of $195.10, suggesting a potential upside of 65.77%. Given CommVault Systems’ stronger consensus rating and higher possible upside, analysts plainly believe CommVault Systems is more favorable than Adobe.

Summary

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

About Adobe

Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, students, workers, marketers, educators, enthusiasts, and communicators. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. It also provides consulting, technical support, and learning services. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

About CommVault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.