Better Cloud Stock: Adobe vs. Salesforce
Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) are two of the largest cloud-based software companies in the world. Eight years ago, Adobe started to transform its locally installed desktop software -- which included Photoshop, Illustrator, and Premiere Pro -- into subscription-based cloud services. It also expanded its cloud ecosystem with enterprise-facing sales, marketing, advertising, and analytics tools.
Salesforce, which was founded in 1999, disrupted the market for on-premise customer relationship management (CRM) software by launching its applications as cloud-based services. Like Adobe, it also expanded its cloud ecosystem with cloud-based sales, marketing, and analytics services.
I compared these two cloud giants last May, and concluded that Adobe's lower valuation, more consistent profits, and better diversification made it the better buy. Since I made that call, Adobe's stock has rallied nearly 70% as Salesforce's stock rose less than 50%. Will Adobe stay ahead of Salesforce over the next 12 months? Let's take a fresh look at both cloud software giants to decide.
Source Fool.com
