Adobe (NASDAQ:ADBE) and Rand Worldwide (OTCMKTS:RWWI) Head to Head Analysis

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

Earnings and Valuation

This table compares Rand Worldwide and Adobe”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rand Worldwide	$178.84 million	3.01	$46.59 million	$1.21	13.22
Adobe	$23.77 billion	4.50	$7.13 billion	$16.71	15.59

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

Institutional & Insider Ownership

0.0% of Rand Worldwide shares are held by institutional investors. Comparatively, 81.8% of Adobe shares are held by institutional investors. 59.2% of Rand Worldwide shares are held by insiders. Comparatively, 0.2% of Adobe shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Rand Worldwide and Adobe, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rand Worldwide	0	0	0	0	0.00
Adobe	4	11	10	1	2.31

Adobe has a consensus price target of $397.16, indicating a potential upside of 52.49%. Given Adobe’s stronger consensus rating and higher probable upside, analysts plainly believe Adobe is more favorable than Rand Worldwide.

Risk and Volatility

Rand Worldwide has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Adobe has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Profitability

This table compares Rand Worldwide and Adobe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rand Worldwide	28.30%	92.21%	25.89%
Adobe	30.00%	61.28%	25.25%

Summary

Adobe beats Rand Worldwide on 12 of the 15 factors compared between the two stocks.

About Rand Worldwide

Rand Worldwide, Inc. provides design automation and data management solutions primarily in the United States and Canada. It operates in five divisions: IMAGINiT Technologies, Rand Simulation, Facilities Management, ASCENT, and Rand 3D. The IMAGINiT Technologies division resells Autodesk solutions and system integration, and consulting services to customers in the manufacturing, infrastructure, building, and media and entertainment industries; resells Twinmotion visualization software, which provides design professionals to transform architectural models and designs into photorealistic images and immersive videos; offers a range of 3D laser scanning equipment and related software to help architectural, engineering, and construction firms; and sells its own proprietary software products and related services. The Rand Simulation division offers Ansys engineering simulation software to help organizations incorporate engineering simulation technology into the product development process; and provides simulation consulting services to enable organizations to achieve cost savings and design improvements through simulation technology. The Facilities Management division provides ARCHIBUS products for facilities management software for space planning, strategic planning, and lease/property administration; and offers various training, consulting, and support services for the ARCHIBUS products. The ASCENT division provides professional training materials and knowledge products for engineering software tools. The Rand 3D division offers training solutions for Dassault Systèmes and PTC products, including Pro/ENGINEER, CREO, and Windchill. Rand Worldwide, Inc. is based in Baltimore, Maryland.

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.