Which Stock Will Rally: Adobe or Oracle?
Even as Oracle fell -6.7% during the past Day, its peer Adobe may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Adobe (ADBE) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Oracle (ORCL) stock, suggesting you may be better off investing in ADBE
- ADBE’s Last 12 Months revenue growth was 10.7%, vs. ORCL’s 9.7%.
- In addition, its Last 3-Year Average revenue growth came in at 10.5%, ahead of ORCL’s 10.2%.
- ADBE leads on profitability over both periods – LTM margin of 36.2% and 3-year average of 35.4%.
A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.
ORCL provides cloud software services, industry solutions, application licenses, license support, enterprise database, software development language, and middleware products. ADBE a global software company offering Creative Cloud subscription and products in Digital Media, Experience, Publishing, and Advertising, serving enterprise customers through direct sales and local offices.
Valuation & Performance Overview
| ORCL | ADBE | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 38.9 | 17.1 | ADBE |
| Revenue Growth | |||
| Last Quarter | 12.2% | 10.7% | ORCL |
| Last 12 Months | 9.7% | 10.7% | ADBE |
| Last 3 Year Average | 10.2% | 10.5% | ADBE |
| Operating Margins | |||
| Last 12 Months | 31.6% | 36.2% | ADBE |
| Last 3 Year Average | 30.3% | 35.4% | ADBE |
| Momentum | |||
| Last 3 Year Return | 244.6% | 4.2% | ORCL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ORCL Revenue Comparison | ADBE Revenue Comparison
See more margin details: ORCL Operating Income Comparison | ADBE Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell ADBE Stock to see if Adobe’s edge holds up under the hood or if Oracle still has cards to play (see Buy or Sell ORCL Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ORCL Return | 24% | 37% | -5% | 31% | 60% | 67% | 483% | <=== | |
| ADBE Return | 52% | 13% | -41% | 77% | -25% | -24% | 7% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 110% | ||
| Monthly Win Rates [3] | |||||||||
| ORCL Win Rate | 67% | 58% | 33% | 58% | 58% | 67% | 57% | ||
| ADBE Win Rate | 67% | 67% | 33% | 67% | 33% | 22% | 48% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 67% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| ORCL Max Drawdown | -25% | -6% | -29% | 0% | -3% | -26% | -15% | ||
| ADBE Max Drawdown | -14% | -16% | -51% | -5% | -27% | -26% | -23% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/30/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read ADBE Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.