Synopsys Inc (SNPS)vsZscaler Inc (ZS)
SNPS
Synopsys Inc
$410.13
-1.32%
TECHNOLOGY · Cap: $78.57B
ZS
Zscaler Inc
$139.44
+0.02%
TECHNOLOGY · Cap: $22.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Synopsys Inc generates 167% more annual revenue ($8.01B vs $3.00B). SNPS leads profitability with a 13.8% profit margin vs -2.3%. ZS appears more attractively valued with a PEG of 1.98. SNPS earns a higher WallStSmart Score of 51/100 (C-).
SNPS
Buy51
out of 100
Grade: C-
ZS
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-825.0%
Fair Value
$44.34
Current Price
$410.13
$365.79 premium
Intrinsic value data unavailable for ZS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Reasonable price relative to book value
Revenue surging 25.9% year-over-year
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
Trading at 10.2x book value
0.0% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 65.5% demonstrates continued momentum.
Bull Case : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 25.9% demonstrates continued momentum.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 62.9x leaves little room for execution misses.
Bear Case : ZS
The primary concerns for ZS are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
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.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SNPS scores higher overall (51/100 vs 36/100) and 65.5% 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.
Visit Website →Zscaler Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
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