Top Image Systems (NASDAQ: TISA) and Synopsys (NASDAQ:SNPS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitabiliy, earnings, risk, institutional ownership and valuation.

Risk and Volatility

Top Image Systems has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Valuation and Earnings

This table compares Top Image Systems and Synopsys’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Top Image Systems $30.50 million 0.77 -$3.45 million ($0.34) -3.85
Synopsys $2.58 billion 4.49 $497.42 million $1.79 43.10

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

Institutional and Insider Ownership

5.8% of Top Image Systems shares are held by institutional investors. Comparatively, 91.4% of Synopsys shares are held by institutional investors. 1.8% of Synopsys shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Top Image Systems and Synopsys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Top Image Systems -19.75% -26.38% -14.45%
Synopsys 10.74% 11.16% 6.89%

Analyst Ratings

This is a summary of recent ratings and target prices for Top Image Systems and Synopsys, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Top Image Systems 0 1 2 0 2.67
Synopsys 0 2 7 0 2.78

Top Image Systems currently has a consensus price target of $2.50, suggesting a potential upside of 90.84%. Synopsys has a consensus price target of $76.50, suggesting a potential downside of 0.84%. Given Top Image Systems’ higher possible upside, equities research analysts clearly believe Top Image Systems is more favorable than Synopsys.

Summary

Synopsys beats Top Image Systems on 11 of the 13 factors compared between the two stocks.

Top Image Systems Company Profile

Top Image Systems Ltd. (TIS) is a developer and marketer of intelligent content capture and workflow automation solutions for managing and validating incoming content in any format from any source. The Company’s solutions deliver digital content to the people and applications that drive an enterprise by using advanced network, mobile and cloud technologies. Its products integrate information regardless of the source and format of the data, whether structured, as in the case of application forms or surveys, or semi-structured, such as invoices, purchase orders, checks, freight and shipping bills, and others or unstructured. Its software minimizes the need for manual data entry by automatically capturing, reading, understanding, identifying, processing, classifying and routing the information contained in documents. Its mobiFLOW software development kit (SDK) is a multi-purpose mobile capture and processing platform that enables capture of any document of any size using a mobile device.

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.

Receive News & Ratings for Top Image Systems Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Top Image Systems Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.