ZM Jumps 16% in a Month, But Does ADBE Offer Better Fundamentals?
Adobe (ADBE) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Zoom Communications (ZM), suggesting you may be better off investing in ADBE
- ADBE’s quarterly revenue growth was 10.6%, vs. ZM’s 4.7%.
- In addition, its Last 12 Months revenue growth came in at 10.6%, ahead of ZM’s 3.6%.
- ADBE leads on profitability over both periods – LTM margin of 36.4% and 3-year average of 35.1%.
ZM provides a unified communications platform offering HD video meetings, chat, content sharing, software-based conference rooms, and webinars across multiple devices and global regions. 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
| ZM | ADBE | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 25.5 | 18.0 | ADBE |
| Revenue Growth | |||
| Last Quarter | 4.7% | 10.6% | ADBE |
| Last 12 Months | 3.6% | 10.6% | ADBE |
| Last 3 Year Average | 3.4% | 10.6% | ADBE |
| Operating Margins | |||
| Last 12 Months | 20.4% | 36.4% | ADBE |
| Last 3 Year Average | 13.1% | 35.1% | ADBE |
| Momentum | |||
| Last 3 Year Return | 3.3% | -5.3% | ZM |
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: ZM Revenue Comparison | ADBE Revenue Comparison
See more margin details: ZM 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 Zoom Communications still has cards to play (see Buy or Sell ZM Stock).
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Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ZM Return | 396% | -45% | -63% | 6% | 13% | 0% | 20% | ||
| ADBE Return | 52% | 13% | -41% | 77% | -25% | -22% | 8% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 100% | <=== | |
| Monthly Win Rates [3] | |||||||||
| ZM Win Rate | 75% | 42% | 25% | 50% | 58% | 57% | 51% | ||
| ADBE Win Rate | 67% | 67% | 33% | 67% | 33% | 29% | 49% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| ZM Max Drawdown | -1% | -46% | -64% | -12% | -23% | -18% | -28% | ||
| ADBE Max Drawdown | -14% | -16% | -51% | -5% | -27% | -25% | -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 9/3/2025 (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 and ZM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.