WallStSmart

Okta Inc (OKTA)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synopsys Inc generates 174% more annual revenue ($8.01B vs $2.92B). SNPS leads profitability with a 13.8% profit margin vs 8.1%. OKTA appears more attractively valued with a PEG of 0.83. OKTA earns a higher WallStSmart Score of 62/100 (C+).

OKTA

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.33

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

OKTASignificantly Overvalued (-43.8%)

Margin of Safety

-43.8%

Fair Value

$61.31

Current Price

$78.41

$17.10 premium

UndervaluedFair: $61.31Overvalued
SNPSSignificantly Overvalued (-858.5%)

Margin of Safety

-858.5%

Fair Value

$44.68

Current Price

$420.32

$375.64 premium

UndervaluedFair: $44.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OKTA4 strengths · Avg: 9.0/10
EPS GrowthGrowth
170.8%10/10

Earnings expanding 170.8% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

SNPS3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

Market CapQuality
$82.24B9/10

Large-cap with strong market position

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

OKTA3 concerns · Avg: 2.3/10
Return on EquityProfitability
3.5%3/10

ROE of 3.5% — below average capital efficiency

P/E RatioValuation
58.9x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

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
2.812/10

Expensive relative to growth rate

P/E RatioValuation
65.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : OKTA

The strongest argument for OKTA centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 11.6% demonstrates continued momentum. PEG of 0.83 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 : OKTA

The primary concerns for OKTA are Return on Equity, P/E Ratio, Altman Z-Score. A P/E of 58.9x leaves little room for execution misses.

Bear Case : SNPS

The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 65.3x leaves little room for execution misses.

Key Dynamics to Monitor

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

SNPS carries more volatility with a beta of 1.16 — 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

OKTA scores higher overall (62/100 vs 51/100) and 11.6% revenue growth. 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.

Okta Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Okta Inc. is a leading identity and access management platform that provides enterprises worldwide with robust and secure authentication solutions designed to enhance digital security and user experience. With a comprehensive array of services, including single sign-on, multi-factor authentication, and lifecycle management, Okta enables organizations to effectively manage and safeguard user identities across diverse environments, both on-premises and in the cloud. Recognized for its innovative approach and exceptional customer service, Okta is strategically positioned for sustained growth in the rapidly evolving cybersecurity landscape, making it a critical partner for businesses aiming to navigate the complexities of digital transformation.

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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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