WallStSmart

Lianhe Sowell International Group Ltd Ordinary Shares (LHSW)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synopsys Inc generates 21815% more annual revenue ($8.01B vs $36.54M). SNPS leads profitability with a 13.8% profit margin vs 8.6%. LHSW trades at a lower P/E of 2.8x. LHSW earns a higher WallStSmart Score of 55/100 (C-).

LHSW

Buy

55

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 8.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.40

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

LHSWUndervalued (+93.2%)

Margin of Safety

+93.2%

Fair Value

$2.81

Current Price

$0.16

$2.65 discount

UndervaluedFair: $2.81Overvalued
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

LHSW5 strengths · Avg: 9.8/10
P/E RatioValuation
2.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Return on EquityProfitability
32.6%10/10

Every $100 of equity generates 33 in profit

EPS GrowthGrowth
51.7%10/10

Earnings expanding 51.7% YoY

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

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

LHSW4 concerns · Avg: 2.5/10
Market CapQuality
$8.57M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Free Cash FlowQuality
$-1.51M2/10

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
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 : LHSW

The strongest argument for LHSW centers on P/E Ratio, Price/Book, Return on Equity.

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 : LHSW

The primary concerns for LHSW are Market Cap, Piotroski F-Score, Revenue Growth.

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

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

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

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

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LHSW scores higher overall (55/100 vs 51/100). Both earn "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.

Lianhe Sowell International Group Ltd Ordinary Shares

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Lianhe Sowell International Group Ltd, provides machine vision products and solutions in China. The company is headquartered in Shenzhen, China.

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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