WallStSmart

Semtech Corporation (SMTC)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synopsys Inc generates 663% more annual revenue ($8.01B vs $1.05B). SNPS leads profitability with a 13.8% profit margin vs -3.9%. SMTC appears more attractively valued with a PEG of 1.21. SNPS earns a higher WallStSmart Score of 47/100 (D+).

SMTC

Avoid

33

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 4.3Quality: 5.8
Piotroski: 5/9Altman Z: 1.29

SNPS

Hold

47

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 3.0Quality: 4.5
Piotroski: 1/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SMTCSignificantly Overvalued (-69.6%)

Margin of Safety

-69.6%

Fair Value

$52.21

Current Price

$119.19

$66.98 premium

UndervaluedFair: $52.21Overvalued

Intrinsic value data unavailable for SNPS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SMTC0 strengths · Avg: 0/10

No standout strengths identified

SNPS2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

Market CapQuality
$95.30B9/10

Large-cap with strong market position

Areas to Watch

SMTC4 concerns · Avg: 2.0/10
Price/BookValuation
20.1x2/10

Trading at 20.1x book value

Return on EquityProfitability
-7.4%2/10

ROE of -7.4% — below average capital efficiency

EPS GrowthGrowth
-32.7%2/10

Earnings declined 32.7%

Altman Z-ScoreHealth
1.292/10

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
3.232/10

Expensive relative to growth rate

P/E RatioValuation
75.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SMTC

PEG of 1.21 suggests the stock is reasonably priced for its growth.

Bull Case : SNPS

The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.

Bear Case : SMTC

The primary concerns for SMTC are Price/Book, Return on Equity, EPS Growth.

Bear Case : SNPS

The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 75.2x leaves little room for execution misses.

Key Dynamics to Monitor

SMTC profiles as a turnaround stock while SNPS is a growth play — different risk/reward profiles.

SMTC carries more volatility with a beta of 2.06 — 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

SNPS scores higher overall (47/100 vs 33/100) and 65.5% revenue growth. Both earn "Hold" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Semtech Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, California.

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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