Synopsys Inc (SNPS)vsTeradyne Inc (TER)
SNPS
Synopsys Inc
$516.48
+2.23%
TECHNOLOGY · Cap: $98.94B
TER
Teradyne Inc
$359.77
+1.60%
TECHNOLOGY · Cap: $55.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Synopsys Inc generates 111% more annual revenue ($8.01B vs $3.79B). TER leads profitability with a 22.6% profit margin vs 13.8%. TER appears more attractively valued with a PEG of 1.51. TER earns a higher WallStSmart Score of 75/100 (B+).
SNPS
Hold47
out of 100
Grade: D+
TER
Strong Buy75
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Strong operational efficiency at 37.6%
Revenue surging 87.0% year-over-year
Earnings expanding 314.8% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Keeps 23 of every $100 in revenue as profit
Areas to Watch
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 20.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 22.6% and operating margin at 37.6%. Revenue growth of 87.0% demonstrates continued momentum.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 79.2x leaves little room for execution misses.
Bear Case : TER
The primary concerns for TER are PEG Ratio, P/E Ratio, Price/Book. A P/E of 65.7x leaves little room for execution misses.
Key Dynamics to Monitor
TER carries more volatility with a beta of 1.79 — expect wider price swings.
TER is growing revenue faster at 87.0% — sustainability is the question.
SNPS generates stronger free cash flow (822M), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TER scores higher overall (75/100 vs 47/100), backed by strong 22.6% margins and 87.0% revenue growth. Both earn "Strong 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.
Visit Website →Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
Visit Website →Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
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