Tremor Video (NYSE: TLRA) and Synopsys (NASDAQ:SNPS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

39.7% of Tremor Video shares are owned by institutional investors. Comparatively, 88.5% of Synopsys shares are owned by institutional investors. 8.2% of Tremor Video shares are owned by company insiders. Comparatively, 1.8% of Synopsys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Tremor Video and Synopsys, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tremor Video 0 1 2 0 2.67
Synopsys 0 3 5 1 2.78

Tremor Video presently has a consensus price target of $4.13, indicating a potential downside of 1.32%. Synopsys has a consensus price target of $84.43, indicating a potential downside of 2.74%. Given Tremor Video’s higher possible upside, equities research analysts plainly believe Tremor Video is more favorable than Synopsys.

Profitability

This table compares Tremor Video and Synopsys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tremor Video -7.11% -16.72% -8.96%
Synopsys 12.37% 11.60% 7.14%

Earnings & Valuation

This table compares Tremor Video and Synopsys’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tremor Video N/A N/A N/A ($0.27) -15.48
Synopsys $2.66 billion 4.90 $534.59 million $2.12 40.95

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

Volatility and Risk

Tremor Video has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Synopsys has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Summary

Synopsys beats Tremor Video on 9 of the 12 factors compared between the two stocks.

About Tremor Video

Telaria, Inc., formerly Tremor Video, Inc., is a software company. The Company provides a data-driven software platform. The Company’s Telaria is designed to monetize and manage premium video inventory wherever and however audiences are watching. The solutions offered by the Company includes programmatic live television, market updates, device-specific reporting, over-the-top content (OTT) specific features, monitor buying patterns, revenue capture, live insights and letter revenue decisions. Its other solutions include server to server connections, campaign diagnostics, custom audiences, inventory packages, review and approve advertisement creative, communicate demand requirements, discoverability and maintenance of publisher brand integrity.

About Synopsys

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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