WallStSmart

Synopsys Inc (SNPS)vsSTMicroelectronics NV ADR (STM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

STMicroelectronics NV ADR generates 43% more annual revenue ($12.38B vs $8.68B). SNPS leads profitability with a 8.9% profit margin vs 1.2%. STM appears more attractively valued with a PEG of 0.71. SNPS earns a higher WallStSmart Score of 45/100 (D+).

SNPS

Hold

45

out of 100

Grade: D+

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

STM

Hold

40

out of 100

Grade: D

Growth: 4.0Profit: 4.0Value: 5.0Quality: 7.8
Piotroski: 4/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SNPS3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
41.9%10/10

Revenue surging 41.9% year-over-year

Market CapQuality
$97.34B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

STM4 strengths · Avg: 8.5/10
Market CapQuality
$70.67B9/10

Large-cap with strong market position

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

SNPS4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.5%3/10

ROE of 2.5% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.022/10

Expensive relative to growth rate

P/E RatioValuation
116.1x2/10

Premium valuation, high expectations priced in

STM4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

P/E RatioValuation
496.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SNPS

The strongest argument for SNPS centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 41.9% demonstrates continued momentum.

Bull Case : STM

The strongest argument for STM centers on Market Cap, Debt/Equity, PEG Ratio. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bear Case : SNPS

The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 116.1x leaves little room for execution misses.

Bear Case : STM

The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 496.9x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

SNPS profiles as a hypergrowth stock while STM is a growth play — different risk/reward profiles.

STM carries more volatility with a beta of 1.51 — expect wider price swings.

SNPS is growing revenue faster at 41.9% — sustainability is the question.

SNPS generates stronger free cash flow (617M), providing more financial flexibility.

Bottom Line

SNPS scores higher overall (45/100 vs 40/100) and 41.9% revenue growth. Both earn "Hold" 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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STMicroelectronics NV ADR

TECHNOLOGY · SEMICONDUCTORS · USA

STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.

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