NFLX vs. ADBE

Last updated Jun 4, 2026

NFLX (Netflix, Inc.) and ADBE (Adobe Inc) are both stocks. NFLX operates in Entertainment (Communication Services), while ADBE operates in Software - Infrastructure (Technology). Over the past 10 years, NFLX returned 23.40%/yr vs 10.01%/yr for ADBE. At a 0.37 correlation, their price movements are largely independent.

Performance

NFLX vs. ADBE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Netflix, Inc. (NFLX) and Adobe Inc (ADBE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NFLX achieves a -13.05% return, which is significantly higher than ADBE's -26.79% return. Over the past 10 years, NFLX has outperformed ADBE with an annualized return of 23.40%, while ADBE has yielded a comparatively lower 10.01% annualized return.

NFLX

• 1D: -2.17%
• 1M: -10.44%
• YTD: -13.05%
• 6M: -21.59%
• 1Y: -33.07%
• 3Y*: 26.74%
• 5Y*: 10.50%
• 10Y*: 23.40%

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%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NFLX vs. ADBE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NFLX Netflix, Inc.	-13.05%	5.19%	83.07%	65.11%	-51.05%	11.41%	67.11%	20.89%	39.44%	55.06%
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 NFLX and ADBE is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since May 24, 2002	0.37

Over the past year, the correlation between NFLX and ADBE has dropped to 0.17 - well below their long-term average of 0.37, suggesting their price drivers have been diverging.

Fundamentals

Market Cap NFLX : $350.41B ADBE : $105.31B
EPS NFLX : $3.09 ADBE : $17.19
PE Ratio NFLX : 26.37 ADBE : 14.91
PEG Ratio NFLX : 1.04 ADBE : 1.05
PS Ratio NFLX : 7.52 ADBE : 4.39
PB Ratio NFLX : 11.26 ADBE : 9.21
Total Revenue (TTM) NFLX : $46.89B ADBE : $24.45B
Gross Profit (TTM) NFLX : $22.99B ADBE : $21.82B
EBITDA (TTM) NFLX : $26.91B ADBE : $9.71B

Return for Risk

NFLX vs. ADBE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NFLX

NFLX Risk / Return Rank: 8
NFLX Sharpe Ratio Rank: 4
NFLX Sortino Ratio Rank: 6
NFLX Omega Ratio Rank: 7
NFLX Calmar Ratio Rank: 12
NFLX Martin Ratio Rank: 9

ADBE

ADBE Risk / Return Rank: 6
ADBE Sharpe Ratio Rank: 3
ADBE Sortino Ratio Rank: 4
ADBE Omega Ratio Rank: 6
ADBE Calmar Ratio Rank: 9
ADBE Martin Ratio Rank: 7

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NFLX vs. ADBE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Netflix, Inc. (NFLX) 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.

	NFLX	ADBE	Difference
Sharpe ratio Return per unit of total volatility	-1.00	-1.13	+0.13
Sortino ratio Return per unit of downside risk	-1.40	-1.63	+0.23
Omega ratio Gain probability vs. loss probability	0.82	0.80	+0.02
Calmar ratio Return relative to maximum drawdown	-0.77	-0.83	+0.06
Martin ratio Return relative to average drawdown	-1.36	-1.41	+0.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NFLX vs. ADBE - Sharpe Ratio Comparison

The current NFLX Sharpe Ratio is -1.00, which is comparable to the ADBE Sharpe Ratio of -1.13. The chart below compares the historical Sharpe Ratios of NFLX and ADBE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NFLX	ADBE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.00	-1.13	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	-0.35	+0.60
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.29	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.41	+0.16

Drawdowns

NFLX vs. ADBE - Drawdown Comparison

The maximum NFLX drawdown since its inception was -81.99%, roughly equal to the maximum ADBE drawdown of -79.89%. Use the drawdown chart below to compare losses from any high point for NFLX and ADBE.

Drawdown Indicators

	NFLX	ADBE	Difference
Max Drawdown Largest peak-to-trough decline	-81.99%	-79.89%	-2.10%
Max Drawdown (1Y) Largest decline over 1 year	-43.35%	-45.95%	+2.60%
Max Drawdown (3Y) Largest decline over 3 years	-43.35%	-64.50%	+21.15%
Max Drawdown (5Y) Largest decline over 5 years	-75.95%	-67.26%	-8.69%
Max Drawdown (10Y) Largest decline over 10 years	-75.95%	-67.26%	-8.69%
Current Drawdown Current decline from peak	-39.12%	-62.78%	+23.66%
Average Drawdown Average peak-to-trough decline	-24.89%	-25.97%	+1.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	24.34%	26.83%	-2.49%

Volatility

NFLX vs. ADBE - Volatility Comparison

The current volatility for Netflix, Inc. (NFLX) is 7.24%, while Adobe Inc (ADBE) has a volatility of 13.95%. This indicates that NFLX 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.

Volatility by Period

	NFLX	ADBE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.24%	13.95%	-6.71%
Volatility (6M) Calculated over the trailing 6-month period	25.66%	28.02%	-2.36%
Volatility (1Y) Calculated over the trailing 1-year period	33.14%	33.69%	-0.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.11%	36.32%	+6.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.52%	34.33%	+7.19%

Dividends

NFLX vs. ADBE - Dividend Comparison

Neither NFLX nor ADBE has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

NFLX vs. ADBE - Profitability Comparison

The chart below illustrates the profitability comparison between Netflix, Inc. and Adobe Inc over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

NFLX - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported a gross profit of 6.36B and revenue of 12.25B. Therefore, the gross margin over that period was 51.9%.

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%.

NFLX - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported an operating income of 3.96B and revenue of 12.25B, resulting in an operating margin of 32.3%.

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%.

NFLX - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported a net income of 5.28B and revenue of 12.25B, resulting in a net margin of 43.1%.

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

Can I hold both NFLX and ADBE in my portfolio?

NFLX and ADBE have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NFLX or ADBE?

ADBE has higher volatility (13.95%) compared to NFLX (7.24%). In terms of maximum drawdown, NFLX dropped -81.99% vs ADBE's -79.89%.

Which has better risk-adjusted returns?

NFLX currently has the higher Sharpe Ratio (-1.00 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.