Synopsys Inc (SNPS)vsStoneCo Ltd (STNE)
SNPS
Synopsys Inc
$410.13
-1.32%
TECHNOLOGY · Cap: $78.57B
STNE
StoneCo Ltd
$14.36
+2.72%
TECHNOLOGY · Cap: $3.50B
Smart Verdict
WallStSmart Research — data-driven comparison
StoneCo Ltd generates 67% more annual revenue ($13.40B vs $8.01B). STNE leads profitability with a 17.3% profit margin vs 13.8%. STNE trades at a lower P/E of 7.1x. STNE earns a higher WallStSmart Score of 78/100 (B+).
SNPS
Buy51
out of 100
Grade: C-
STNE
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-825.0%
Fair Value
$44.34
Current Price
$410.13
$365.79 premium
Margin of Safety
+80.0%
Fair Value
$88.45
Current Price
$14.36
$74.09 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 46.3%
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Earnings expanding 46.1% YoY
Areas to Watch
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 65.5% demonstrates continued momentum.
Bull Case : STNE
The strongest argument for STNE centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 17.3% and operating margin at 46.3%. Revenue growth of 11.2% demonstrates continued momentum.
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.
Bear Case : STNE
No major red flags identified for STNE, but monitor valuation.
Key Dynamics to Monitor
SNPS profiles as a growth stock while STNE is a mature play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.88 — 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
STNE scores higher overall (78/100 vs 51/100), backed by strong 17.3% margins and 11.2% revenue growth. 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.
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.
Visit Website →StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
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