Head to Head Contrast: Enfusion (NYSE:ENFN) & Adobe (NASDAQ:ADBE)

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

Volatility and Risk

Enfusion has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Adobe has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Insider & Institutional Ownership

81.1% of Enfusion shares are held by institutional investors. Comparatively, 81.8% of Adobe shares are held by institutional investors. 36.4% of Enfusion shares are held by insiders. Comparatively, 0.2% of Adobe shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Enfusion and Adobe’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enfusion	$174.54 million	6.25	$6.03 million	$0.03	284.09
Adobe	$19.41 billion	12.69	$5.43 billion	$11.13	49.91

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enfusion	3	2	1	0	1.67
Adobe	2	7	21	0	2.63

Enfusion currently has a consensus price target of $9.33, suggesting a potential upside of 9.55%. Adobe has a consensus price target of $607.67, suggesting a potential upside of 9.38%. Given Enfusion’s higher probable upside, equities research analysts clearly believe Enfusion is more favorable than Adobe.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enfusion	1.40%	6.60%	4.86%
Adobe	24.86%	40.67%	21.64%

Summary

Adobe beats Enfusion on 11 of the 14 factors compared between the two stocks.

About Enfusion

Enfusion, Inc. provides software-as-a-service solutions for investment management industry in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company provides Portfolio Management System, which generates a real-time investment book of record that consists of valuation and risk tools, which allows users to analyze aggregated or decomposed portfolio data for chief investment officers (CIOs) and portfolio managers; and Order and Execution Management System that enables portfolio managers, traders, compliance teams, and analysts to electronically communicate trade orders for a variety of asset classes, manage trade orders, and systemically enforce trading regulations and internal guidelines. It also offers Accounting/General Ledger System, a real-time accounting book of record for chief financial officers, chief operating officers, accountants, and operations teams; Enfusion Analytics System, which enables CIOs, portfolio managers, traders, and analysts to analyze portfolios through time horizons and automate customized visualized reports for internal and external stakeholders; and technology-powered and managed services. Enfusion, Inc. was founded in 1997 and is headquartered in Chicago, Illinois.

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.