Synopsys Inc (SNPS)vsZoom Video Communications Inc (ZM)
SNPS
Synopsys Inc
$482.60
+0.29%
TECHNOLOGY · Cap: $92.45B
ZM
Zoom Video Communications Inc
$97.15
+1.45%
TECHNOLOGY · Cap: $28.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Synopsys Inc generates 64% more annual revenue ($8.01B vs $4.87B). ZM leads profitability with a 39.0% profit margin vs 13.8%. SNPS appears more attractively valued with a PEG of 3.17. ZM earns a higher WallStSmart Score of 70/100 (B-).
SNPS
Hold47
out of 100
Grade: D+
ZM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for SNPS.
Margin of Safety
-8.7%
Fair Value
$84.76
Current Price
$97.15
$12.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Keeps 39 of every $100 in revenue as profit
Earnings expanding 91.5% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 20 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
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
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.
Bull Case : ZM
The strongest argument for ZM centers on Profit Margin, EPS Growth, Altman Z-Score. Profitability is solid with margins at 39.0% and operating margin at 21.5%.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 74.3x leaves little room for execution misses.
Bear Case : ZM
The primary concerns for ZM are PEG Ratio.
Key Dynamics to Monitor
SNPS profiles as a growth stock while ZM is a mature play — different risk/reward profiles.
SNPS carries more volatility with a beta of 1.15 — 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
ZM scores higher overall (70/100 vs 47/100), backed by strong 39.0% margins. 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.
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 →Zoom Video Communications Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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