MSFT vs. ADBE
MSFT (Microsoft Corporation) and ADBE (Adobe Inc) are both stocks. Both operate in the Software - Infrastructure industry within the Technology sector. Over the past 10 years, MSFT returned 25.03%/yr vs 10.01%/yr for ADBE. At a 0.47 correlation, their price movements are largely independent.
Performance
MSFT vs. ADBE - Performance Comparison
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Returns By Period
In the year-to-date period, MSFT achieves a -11.24% return, which is significantly higher than ADBE's -26.79% return. Over the past 10 years, MSFT has outperformed ADBE with an annualized return of 25.03%, while ADBE has yielded a comparatively lower 10.01% annualized return.
MSFT
- 1D
- -3.17%
- 1M
- 3.54%
- YTD
- -11.24%
- 6M
- -10.15%
- 1Y
- -6.96%
- 3Y*
- 9.26%
- 5Y*
- 12.17%
- 10Y*
- 25.03%
ADBE
- 1D
- -2.24%
- 1M
- 0.90%
- YTD
- -26.79%
- 6M
- -21.59%
- 1Y
- -37.88%
- 3Y*
- -16.26%
- 5Y*
- -12.67%
- 10Y*
- 10.01%
MSFT vs. ADBE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | -11.24% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
ADBE Adobe Inc | -26.79% | -21.29% | -25.46% | 77.28% | -40.65% | 13.38% | 51.64% | 45.78% | 29.10% | 70.22% |
Correlation
The correlation between MSFT and ADBE is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.47 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Aug 21, 1986 | 0.47 |
The correlation between MSFT and ADBE shifts across timeframes, from 0.33 (1 year) to 0.68 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
MSFT:
$3.18T
ADBE:
$105.31B
MSFT:
$16.79
ADBE:
$17.19
MSFT:
25.45
ADBE:
14.91
MSFT:
1.78
ADBE:
1.05
MSFT:
10.01
ADBE:
4.39
MSFT:
7.68
ADBE:
9.21
MSFT:
$318.27B
ADBE:
$24.45B
MSFT:
$217.41B
ADBE:
$21.82B
MSFT:
$200.96B
ADBE:
$9.71B
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Return for Risk
MSFT vs. ADBE — Risk / Return Rank
MSFT
ADBE
MSFT vs. ADBE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and Adobe Inc (ADBE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| MSFT | ADBE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.85 | ||
| Sortino ratioReturn per unit of downside risk | +1.42 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 0.80 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | -0.21 | -0.83 | +0.62 |
| Martin ratioReturn relative to average drawdown | -0.44 | -1.41 | +0.98 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| MSFT | ADBE | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.28 | -1.13 | +0.85 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.46 | -0.35 | +0.81 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.93 | 0.29 | +0.64 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.75 | 0.41 | +0.33 |
Drawdowns
MSFT vs. ADBE - Drawdown Comparison
The maximum MSFT drawdown since its inception was -69.38%, smaller than the maximum ADBE drawdown of -79.89%. Use the drawdown chart below to compare losses from any high point for MSFT and ADBE.
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Drawdown Indicators
| MSFT | ADBE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.38% | -79.89% | +10.51% |
Max Drawdown (1Y)Largest decline over 1 year | -33.91% | -45.95% | +12.04% |
Max Drawdown (3Y)Largest decline over 3 years | -33.91% | -64.50% | +30.59% |
Max Drawdown (5Y)Largest decline over 5 years | -37.15% | -67.26% | +30.11% |
Max Drawdown (10Y)Largest decline over 10 years | -37.15% | -67.26% | +30.11% |
Current DrawdownCurrent decline from peak | -20.67% | -62.78% | +42.11% |
Average DrawdownAverage peak-to-trough decline | -21.78% | -25.97% | +4.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.95% | 26.83% | -10.88% |
Volatility
MSFT vs. ADBE - Volatility Comparison
The current volatility for Microsoft Corporation (MSFT) is 9.95%, while Adobe Inc (ADBE) has a volatility of 13.95%. This indicates that MSFT experiences smaller price fluctuations and is considered to be less risky than ADBE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MSFT | ADBE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.95% | 13.95% | -4.00% |
Volatility (6M)Calculated over the trailing 6-month period | 22.34% | 28.02% | -5.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.12% | 33.69% | -8.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.63% | 36.32% | -9.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.04% | 34.33% | -7.29% |
Dividends
MSFT vs. ADBE - Dividend Comparison
MSFT's dividend yield for the trailing twelve months is around 0.83%, while ADBE has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ADBE Adobe Inc | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
MSFT Microsoft Corporation | 0.83% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Financials
MSFT vs. ADBE - Financials Comparison
This section allows you to compare key financial metrics between Microsoft Corporation and Adobe Inc. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
MSFT vs. ADBE - Profitability Comparison
MSFT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a gross profit of 56.06B and revenue of 82.89B. Therefore, the gross margin over that period was 67.6%.
ADBE - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Adobe Inc reported a gross profit of 5.73B and revenue of 6.40B. Therefore, the gross margin over that period was 89.6%.
MSFT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported an operating income of 38.40B and revenue of 82.89B, resulting in an operating margin of 46.3%.
ADBE - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Adobe Inc reported an operating income of 2.42B and revenue of 6.40B, resulting in an operating margin of 37.8%.
MSFT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a net income of 31.78B and revenue of 82.89B, resulting in a net margin of 38.3%.
ADBE - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Adobe Inc reported a net income of 1.89B and revenue of 6.40B, resulting in a net margin of 29.5%.
Frequently Asked Questions
MSFT and ADBE have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ADBE has higher volatility (13.95%) compared to MSFT (9.95%). In terms of maximum drawdown, MSFT dropped -69.38% vs ADBE's -79.89%.
MSFT currently has the higher Sharpe Ratio (-0.28 vs -1.13), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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