WallStSmart

Rapid7 Inc (RPD)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synopsys Inc generates 831% more annual revenue ($8.01B vs $859.79M). SNPS leads profitability with a 13.8% profit margin vs 2.7%. RPD appears more attractively valued with a PEG of 0.30. RPD earns a higher WallStSmart Score of 66/100 (B-).

RPD

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 5.5Value: 10.0Quality: 5.0

SNPS

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 5.0Value: 2.0Quality: 5.5
Piotroski: 1/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RPDUndervalued (+56.2%)

Margin of Safety

+56.2%

Fair Value

$16.85

Current Price

$5.60

$11.25 discount

UndervaluedFair: $16.85Overvalued
SNPSSignificantly Overvalued (-825.0%)

Margin of Safety

-825.0%

Fair Value

$44.34

Current Price

$410.13

$365.79 premium

UndervaluedFair: $44.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RPD5 strengths · Avg: 8.6/10
PEG RatioValuation
0.3010/10

Growing faster than its price suggests

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

EPS GrowthGrowth
39.0%8/10

Earnings expanding 39.0% YoY

SNPS3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

Market CapQuality
$78.57B9/10

Large-cap with strong market position

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

RPD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Market CapQuality
$415.79M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
1.0%3/10

Operating margin of 1.0%

SNPS4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.772/10

Expensive relative to growth rate

P/E RatioValuation
62.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : RPD

The strongest argument for RPD centers on PEG Ratio, Return on Equity, P/E Ratio. PEG of 0.30 suggests the stock is reasonably priced for its growth.

Bull Case : SNPS

The strongest argument for SNPS centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 65.5% demonstrates continued momentum.

Bear Case : RPD

The primary concerns for RPD are Revenue Growth, Market Cap, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : SNPS

The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 62.9x leaves little room for execution misses.

Key Dynamics to Monitor

RPD profiles as a value stock while SNPS is a growth play — different risk/reward profiles.

SNPS carries more volatility with a beta of 1.16 — expect wider price swings.

SNPS is growing revenue faster at 65.5% — sustainability is the question.

SNPS generates stronger free cash flow (822M), providing more financial flexibility.

Bottom Line

RPD scores higher overall (66/100 vs 51/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Rapid7 Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Rapid7, Inc. provides cyber security solutions. The company is headquartered in Boston, Massachusetts.

Synopsys Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.

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