Head-To-Head Survey: RealPage (RP) versus Adobe Systems (ADBE)

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

Risk and Volatility

RealPage has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Adobe Systems has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
RealPage 0.69% 10.56% 4.30%
Adobe Systems 26.68% 27.08% 15.70%

Insider and Institutional Ownership

81.1% of RealPage shares are owned by institutional investors. Comparatively, 84.9% of Adobe Systems shares are owned by institutional investors. 24.9% of RealPage shares are owned by insiders. Comparatively, 0.3% of Adobe Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares RealPage and Adobe Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RealPage $670.96 million 8.90 $370,000.00 $0.36 176.81
Adobe Systems $7.30 billion 18.42 $1.69 billion $3.59 76.52

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

Analyst Ratings

This is a summary of current recommendations and price targets for RealPage and Adobe Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealPage 0 1 5 0 2.83
Adobe Systems 0 8 20 0 2.71

RealPage presently has a consensus target price of $63.86, suggesting a potential upside of 0.33%. Adobe Systems has a consensus target price of $259.59, suggesting a potential downside of 5.50%. Given RealPage’s stronger consensus rating and higher probable upside, research analysts clearly believe RealPage is more favorable than Adobe Systems.

Summary

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

RealPage Company Profile

RealPage, Inc. provides software and data analytics for the real estate industry in the United States. It offers OneSite, a property management solution for multi-family, affordable property, rural housing, military housing, senior and student living, and commercial property types; and Propertyware for accounting, maintenance and work order management, marketing, spend management, portal services, and screening and payment solutions. The company also provides RealPage Financial Services for back office accounting; Kigo, a vacation rental property management system; spend management solutions for property owners and managers; The RealPage Cloud, an application infrastructure to outsource portions of the information technology (IT) operations; SmartSource IT for IT management and support services; and EasyLMS, a learning management system. In addition, it offers Online Leasing, Contact Center, Websites and Syndication, MyNewPlace, Lead2Lease relationship management, and Resident Screening solutions that manage leasing and marketing processes, including Websites and syndication, paid lead generation, organic lead generation, lead management, automated lead closure, lead analytics, real-time unit availability, automated online apartment leasing, and applicant screening. Further, the company provides resident services solutions, such as resident utility management, resident payments, resident portal, contact center maintenance, and renter's insurance for utility billing, renter payment processing, service requests, lease renewals, renter's insurance, and consulting and advisory services; asset optimization solutions covering yieldstar revenue management, business intelligence, and asset and investment management platforms; and professional services, such as consulting and implementation, as well as training programs. Additionally, it offers IT infrastructure and product support services. RealPage, Inc. was founded in 1998 and is headquartered in Richardson, Texas.

Adobe Systems Company Profile

Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company's Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, audience management, and video delivery and monetization solutions to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as e-learning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. The company was founded in 1982 and is headquartered in San Jose, California.

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