GRIDSUM HOLDING (NASDAQ: GSUM) and Synopsys (NASDAQ:SNPS) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitabiliy.

Profitability

This table compares GRIDSUM HOLDING and Synopsys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GRIDSUM HOLDING N/A N/A N/A
Synopsys 10.74% 11.16% 6.89%

Institutional & Insider Ownership

27.0% of GRIDSUM HOLDING shares are owned by institutional investors. Comparatively, 91.4% of Synopsys shares are owned by institutional investors. 1.8% of Synopsys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares GRIDSUM HOLDING and Synopsys’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GRIDSUM HOLDING $64.63 million 3.36 -$5.43 million N/A N/A
Synopsys $2.58 billion 4.46 $497.42 million $1.79 42.80

Synopsys has higher revenue and earnings than GRIDSUM HOLDING.

Analyst Ratings

This is a summary of current ratings and recommmendations for GRIDSUM HOLDING and Synopsys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GRIDSUM HOLDING 0 0 3 0 3.00
Synopsys 0 2 7 0 2.78

GRIDSUM HOLDING presently has a consensus target price of $20.87, indicating a potential upside of 185.45%. Synopsys has a consensus target price of $76.50, indicating a potential downside of 0.14%. Given GRIDSUM HOLDING’s stronger consensus rating and higher possible upside, equities research analysts clearly believe GRIDSUM HOLDING is more favorable than Synopsys.

Summary

Synopsys beats GRIDSUM HOLDING on 9 of the 11 factors compared between the two stocks.

GRIDSUM HOLDING Company Profile

Gridsum Holding Inc. is a holding company. The Company provides data analysis software for multinational and domestic enterprises, and government agencies in China. The Company’s technology, the Gridsum Big Data Platform performs multi-dimensional correlation analysis and analyzes real-time events. The Company offers various types of solutions and technologies. The Company’s software products are designed for a range of commercial and governmental applications. The Company’s products focus on digital marketing analytics and automation solutions. The Company offers Web analytics solutions based on data warehouse technology to build solutions on a distributed data warehouse architecture, using the open-source Hadoop framework. The Company delivers its solutions as cloud-based software-as-a-service (SaaS) offerings that manage information technology (IT) support costs by outsourcing hardware and software maintenance and support.

Synopsys Company Profile

Synopsys, Inc. provides software, intellectual property (IP) and services. The Company supplies the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. It also offers IP products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. It provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. It provides technical services to support its solutions and help its customers develop chips and electronic systems. It is also a provider of software tools that developers use to develop software code in a range of industries, including electronics, financial services, energy, and industrials. It offers products and services in four categories: core EDA; IP, Systems and Software Integrity; Manufacturing Solutions, and Professional Services and Other.

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