Synopsys (NASDAQ: SNPS) is one of 118 publicly-traded companies in the “Software” industry, but how does it contrast to its rivals? We will compare Synopsys to related businesses based on the strength of its institutional ownership, risk, profitability, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares Synopsys and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synopsys 12.37% 11.60% 7.14%
Synopsys Competitors -43.41% -25.17% -9.92%

Analyst Ratings

This is a breakdown of current ratings and price targets for Synopsys and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synopsys 0 3 6 0 2.67
Synopsys Competitors 262 2000 4261 84 2.63

Synopsys presently has a consensus target price of $83.00, suggesting a potential downside of 1.27%. As a group, “Software” companies have a potential upside of 3.87%. Given Synopsys’ rivals higher possible upside, analysts plainly believe Synopsys has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Synopsys and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Synopsys $2.66 billion $534.59 million 39.66
Synopsys Competitors $1.49 billion $438.76 million 40.64

Synopsys has higher revenue and earnings than its rivals. Synopsys is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

88.8% of Synopsys shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Software” companies are owned by institutional investors. 1.8% of Synopsys shares are owned by insiders. Comparatively, 17.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Synopsys has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Synopsys’ rivals have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Summary

Synopsys beats its rivals on 9 of the 13 factors compared.

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 Synopsys Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Synopsys Inc. and related companies with MarketBeat.com's FREE daily email newsletter.