Contrasting Synopsys (SNPS) and The Competition
Synopsys (NASDAQ: SNPS) is one of 121 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Synopsys to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.
Risk & Volatility
Synopsys has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Synopsys’ peers have a beta of 1.01, indicating that their average share price is 1% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Synopsys and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Synopsys currently has a consensus target price of $84.43, suggesting a potential downside of 2.90%. As a group, “Software” companies have a potential downside of 9.92%. Given Synopsys’ stronger consensus rating and higher probable upside, research analysts clearly believe Synopsys is more favorable than its peers.
Valuation and Earnings
This table compares Synopsys and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
Synopsys has higher revenue, but lower earnings than its peers. Synopsys is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Synopsys and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
88.7% of Synopsys shares are held by institutional investors. Comparatively, 57.8% of shares of all “Software” companies are held by institutional investors. 1.8% of Synopsys shares are held by insiders. Comparatively, 19.3% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Synopsys beats its peers on 8 of the 13 factors compared.
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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