WallStSmart

NetApp Inc (NTAP)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synopsys Inc generates 19% more annual revenue ($8.01B vs $6.71B). NTAP leads profitability with a 18.1% profit margin vs 13.8%. NTAP appears more attractively valued with a PEG of 1.15. NTAP earns a higher WallStSmart Score of 66/100 (B-).

NTAP

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 10.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.24

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

NTAPUndervalued (+45.2%)

Margin of Safety

+45.2%

Fair Value

$193.10

Current Price

$105.50

$87.60 discount

UndervaluedFair: $193.10Overvalued
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

NTAP3 strengths · Avg: 8.7/10
Return on EquityProfitability
112.6%10/10

Every $100 of equity generates 113 in profit

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

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

NTAP4 concerns · Avg: 2.8/10
Price/BookValuation
18.0x4/10

Trading at 18.0x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Altman Z-ScoreHealth
1.242/10

Distress zone — elevated risk

Debt/EquityHealth
2.781/10

Elevated debt levels

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 : NTAP

The strongest argument for NTAP centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.1% and operating margin at 25.2%. PEG of 1.15 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 : NTAP

The primary concerns for NTAP are Price/Book, Revenue Growth, Altman Z-Score. Debt-to-equity of 2.78 is elevated, increasing financial risk.

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

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

NTAP carries more volatility with a beta of 1.35 — 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

NTAP scores higher overall (66/100 vs 51/100), backed by strong 18.1% margins. 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.

NetApp Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

NetApp, Inc. is an American hybrid cloud data services and data management company headquartered in Sunnyvale, California. Founded in 1992 with an IPO in 1995, NetApp offers cloud data services for management of applications and data both online and physically.

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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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