WallStSmart

Super Micro Computer Inc (SMCI)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Super Micro Computer Inc generates 250% more annual revenue ($28.06B vs $8.01B). SNPS leads profitability with a 13.8% profit margin vs 3.1%. SMCI appears more attractively valued with a PEG of 0.91. SMCI earns a higher WallStSmart Score of 67/100 (B-).

SMCI

Strong Buy

67

out of 100

Grade: B-

Growth: 9.3Profit: 5.0Value: 8.0Quality: 6.5
Piotroski: 3/9Altman Z: 3.55

SNPS

Hold

47

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 3.0Quality: 4.5
Piotroski: 1/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SMCIUndervalued (+85.2%)

Margin of Safety

+85.2%

Fair Value

$216.33

Current Price

$27.09

$189.24 discount

UndervaluedFair: $216.33Overvalued

Intrinsic value data unavailable for SNPS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SMCI4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
123.4%10/10

Revenue surging 123.4% year-over-year

Altman Z-ScoreHealth
3.5510/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

SNPS2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

Market CapQuality
$95.30B9/10

Large-cap with strong market position

Areas to Watch

SMCI4 concerns · Avg: 2.8/10
Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-45.12M2/10

Negative free cash flow — burning cash

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
3.232/10

Expensive relative to growth rate

P/E RatioValuation
75.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SMCI

The strongest argument for SMCI centers on Revenue Growth, Altman Z-Score, PEG Ratio. Revenue growth of 123.4% demonstrates continued momentum. PEG of 0.91 suggests the stock is reasonably priced for its growth.

Bull Case : SNPS

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

Bear Case : SMCI

The primary concerns for SMCI are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.1% 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 75.2x leaves little room for execution misses.

Key Dynamics to Monitor

SMCI profiles as a hypergrowth stock while SNPS is a growth play — different risk/reward profiles.

SMCI carries more volatility with a beta of 1.63 — expect wider price swings.

SMCI is growing revenue faster at 123.4% — sustainability is the question.

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

Bottom Line

SMCI scores higher overall (67/100 vs 47/100) and 123.4% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Super Micro Computer Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions based on an open, modular architecture. The company is headquartered in San Jose, California.

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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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