Analyzing Adobe (NASDAQ:ADBE) and Intrusion (NASDAQ:INTZ)

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

Analyst Ratings

This is a breakdown of current ratings for Intrusion and Adobe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intrusion	1	2	1	0	2.00
Adobe	7	20	9	0	2.06

Intrusion presently has a consensus price target of $5.25, indicating a potential upside of 708.69%. Adobe has a consensus price target of $283.90, indicating a potential upside of 20.16%. Given Intrusion’s higher possible upside, equities research analysts clearly believe Intrusion is more favorable than Adobe.

Risk and Volatility

Intrusion has a beta of -1.62, meaning that its share price is 262% less volatile than the S&P 500. Comparatively, Adobe has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Insider and Institutional Ownership

19.4% of Intrusion shares are held by institutional investors. Comparatively, 81.8% of Adobe shares are held by institutional investors. 10.1% of Intrusion shares are held by company insiders. Comparatively, 0.2% of Adobe shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intrusion	-191.24%	-178.06%	-99.59%
Adobe	28.05%	65.65%	25.54%

Earnings & Valuation

This table compares Intrusion and Adobe”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intrusion	$7.09 million	2.24	-$9.06 million	($0.55)	-1.18
Adobe	$23.77 billion	3.87	$7.13 billion	$17.92	13.19

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

Summary

Adobe beats Intrusion on 12 of the 14 factors compared between the two stocks.

About Intrusion

Intrusion Inc., a cybersecurity company in the United States. The company offers its customers access to threat intelligence database, which contains the historical data, known associations, and reputational behavior of Internet Protocol addresses. It offers INTRUSION Shield, a zero trust reputation-based Software as a Service solution that inspects and kills dangerous network connections. The company also provides INTRUSION TraceCop, a big data tool that contains an inventory of network selectors and enrichments to support forensic investigations; and INTRUSION Savant, a network monitoring solution that uses the data available in TraceCop to identify suspicious traffic in real-time. In addition, it engages in the provision of pre-and post-sales support services, such as network security design, system installation, and technical consulting services. The company serves US federal government entities, state and local government entities, and companies ranging from mid-market to large enterprises through a direct sales force and value-added resellers. The company was formerly known as Intrusion.com, Inc. and changed its name to Intrusion Inc. in November 2001. Intrusion Inc. was founded in 1983 and is headquartered in Plano, Texas.

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.