WallStSmart

Synopsys Inc (SNPS)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synopsys Inc generates 532% more annual revenue ($9.42B vs $1.49B). SNPS leads profitability with a 11.4% profit margin vs 3.8%. SONO trades at a lower P/E of 32.3x. SNPS earns a higher WallStSmart Score of 59/100 (C).

SNPS

Buy

59

out of 100

Grade: C

Growth: 9.3Profit: 5.0Value: 2.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.48

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SNPSSignificantly Overvalued (-88.0%)

Margin of Safety

-88.0%

Fair Value

$211.39

Current Price

$378.47

$167.08 premium

UndervaluedFair: $211.39Overvalued
SONOSignificantly Overvalued (-32.1%)

Margin of Safety

-32.1%

Fair Value

$12.49

Current Price

$15.60

$3.11 premium

UndervaluedFair: $12.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SNPS4 strengths · Avg: 9.3/10
Revenue GrowthGrowth
42.4%10/10

Revenue surging 42.4% year-over-year

EPS GrowthGrowth
89.3%10/10

Earnings expanding 89.3% YoY

Market CapQuality
$76.15B9/10

Large-cap with strong market position

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

SNPS4 concerns · Avg: 3.0/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Return on EquityProfitability
3.5%3/10

ROE of 3.5% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
69.5x2/10

Premium valuation, high expectations priced in

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : SNPS

The strongest argument for SNPS centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 42.4% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : SNPS

The primary concerns for SNPS are PEG Ratio, Return on Equity, Piotroski F-Score. A P/E of 69.5x leaves little room for execution misses.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

SNPS is growing revenue faster at 42.4% — sustainability is the question.

SNPS generates stronger free cash flow (746M), providing more financial flexibility.

Bottom Line

SNPS scores higher overall (59/100 vs 48/100) and 42.4% revenue growth. Both earn "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.

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Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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