Head-To-Head Review: Synopsys (SNPS) vs. Citrix Systems (CTXS)
Synopsys (NASDAQ: SNPS) and Citrix Systems (NASDAQ:CTXS) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider Ownership
89.9% of Synopsys shares are owned by institutional investors. Comparatively, 94.4% of Citrix Systems shares are owned by institutional investors. 1.8% of Synopsys shares are owned by company insiders. Comparatively, 0.4% of Citrix Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Synopsys and Citrix Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Synopsys and Citrix Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Synopsys||$2.72 billion||4.89||$136.56 million||$0.85||104.29|
|Citrix Systems||$3.42 billion||3.85||$536.11 million||$2.95||29.62|
Citrix Systems has higher revenue and earnings than Synopsys. Citrix Systems is trading at a lower price-to-earnings ratio than Synopsys, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Synopsys and Citrix Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Synopsys presently has a consensus target price of $99.14, indicating a potential upside of 11.84%. Citrix Systems has a consensus target price of $89.50, indicating a potential upside of 2.41%. Given Synopsys’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Synopsys is more favorable than Citrix Systems.
Volatility and Risk
Synopsys has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Citrix Systems has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
Citrix Systems beats Synopsys on 9 of the 14 factors compared between the two stocks.
Synopsys Company Profile
Synopsys, Inc. provides software, intellectual property (IP) and services. The Company supplies the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. It also offers IP products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. It provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. It provides technical services to support its solutions and help its customers develop chips and electronic systems. It is also a provider of software tools that developers use to develop software code in a range of industries, including electronics, financial services, energy, and industrials. It offers products and services in four categories: core EDA; IP, Systems and Software Integrity; Manufacturing Solutions, and Professional Services and Other.
Citrix Systems Company Profile
Citrix Systems, Inc. offers Enterprise and Service Provider products, which include Workspace Services solutions and Delivery Networking products. The Company’s Enterprise and Service Provider products include Cloud Services solutions, and related license updates and maintenance, support and professional services. The Company’s NetScaler nCore Technology is an architecture that enables execution of multiple packet engines in parallel. The Company’s workspace services include Application Virtualization and virtual desktop infrastructure (VDI), Enterprise Mobility Management and Citrix Workspace Suite. The Company’s NetScaler ADC is a software-defined application delivery controller (ADC) and load balancer. The Company’s Cloud Services include ShareFile and Citrix Cloud. It provides various ways for customers to receive upgrades, support and maintenance for products, which include Software Maintenance, Subscription Advantage, Technical Support Services and Hardware Maintenance.
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