Comparing Amber Road (AMBR) and Synopsys (SNPS)

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

Analyst Recommendations

This is a breakdown of current ratings for Amber Road and Synopsys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amber Road 0 0 3 0 3.00
Synopsys 1 0 7 0 2.75

Amber Road presently has a consensus target price of $12.00, indicating a potential upside of 61.73%. Synopsys has a consensus target price of $97.63, indicating a potential upside of 9.78%. Given Amber Road’s stronger consensus rating and higher probable upside, equities analysts clearly believe Amber Road is more favorable than Synopsys.

Risk and Volatility

Amber Road has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

72.6% of Amber Road shares are held by institutional investors. Comparatively, 90.8% of Synopsys shares are held by institutional investors. 13.1% of Amber Road shares are held by insiders. Comparatively, 1.8% of Synopsys shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Amber Road and Synopsys’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amber Road $73.16 million 2.76 -$18.72 million ($0.57) -13.02
Synopsys $2.72 billion 4.85 $136.56 million $0.85 104.62

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

Profitability

This table compares Amber Road and Synopsys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amber Road -20.19% -53.22% -14.53%
Synopsys 5.01% 5.78% 3.55%

Summary

Synopsys beats Amber Road on 10 of the 13 factors compared between the two stocks.

About Amber Road

Amber Road, Inc. is a provider of cloud-based global trade management (GTM) solutions. The Company’s GTM solutions include modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, and Global Knowledge trade content database to importers and exporters, non-vessel owning common carriers (resellers), and ocean carriers. The Company delivers its GTM solution using a software-as-a-service (SaaS) model. The Company’s solution automates the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities. The Company’s GTM solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in approximately 145 countries, and a global supply chain network connecting its customers with the trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers.

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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