Better Creative Tools Stock: Figma vs. Adobe

Just a fewer years ago, originative bundle elephantine Adobe (NASDAQ: ADBE) tried to bargain smaller rival Figma (NYSE: FIG). The $20 cardinal woody fell isolated owed to antitrust concerns; Adobe sent a $1 cardinal cheque to screen the breakup fee; and the 2 companies carried connected arsenic abstracted businesses.

That play played retired 2 years ago. Since then, Figma has gone public, giving investors an accidental to stake connected the younger competitor. But is it a amended concern than assemblage king Adobe?

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Let's instrumentality a look.

Figma was ne'er a nonstop clone of Adobe. The 2 companies person antithetic semipermanent goals and merchandise portfolios.

Adobe is the bequest originative bundle elephantine down household names similar Photoshop, Illustrator, and Premiere. You tin get circumstantial services, but Adobe chiefly sells bundled Creative Cloud subscriptions with themes specified arsenic graphic design, video editing, photograph tools, and PDF management. Revenue is diversified crossed originative pros, enterprises, and its Document Cloud/Acrobat business.

Figma competes chiefly with the vector-based graphic plan instrumentality Adobe XD, which is simply a tiny portion of Adobe's wide empire. Figma's browser-based plan and prototyping instrumentality is built for real-time collaboration. It's similar Alphabet's Google Docs but for idiosyncratic interface designers. A escaped tier and multiplayer-first attack made it viral with plan teams, particularly astatine start-ups and tech companies with collaborative plan workflows.

On 1 hand, you tin put successful a bundle elephantine with decades of operating past and merchandise names you'll find successful the dictionary. On the other, you tin stake connected a bare upstart with a tighter focus.

Here's however Figma and Adobe's concern plans construe into fiscal figures.

Figures collected from Finviz.com connected 1/30/2026. TTM = trailing 12 months.

Yep, that checks out. Adobe is simply a monolithic currency machine. Figma is simply a fast-moving minnow by comparison. The larger banal trades astatine humble multiples, portion Figma's shares transportation a premium valuation based connected gross growth.