Head to Head Analysis: Autodesk (NASDAQ:ADSK) & Synopsys (NASDAQ:SNPS)

Autodesk (NASDAQ:ADSK) and Synopsys (NASDAQ:SNPS) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Risk & Volatility

Autodesk has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Institutional & Insider Ownership

90.2% of Autodesk shares are owned by institutional investors. Comparatively, 85.5% of Synopsys shares are owned by institutional investors. 0.1% of Autodesk shares are owned by company insiders. Comparatively, 0.6% of Synopsys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Autodesk and Synopsys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autodesk	21.08%	58.63%	15.10%
Synopsys	11.43%	6.24%	3.95%

Valuation and Earnings

This table compares Autodesk and Synopsys”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autodesk	$7.21 billion	6.14	$1.12 billion	$7.73	27.38
Synopsys	$7.05 billion	10.77	$1.33 billion	$5.66	70.07

Synopsys has lower revenue, but higher earnings than Autodesk. Autodesk is trading at a lower price-to-earnings ratio than Synopsys, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Autodesk and Synopsys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autodesk	0	6	24	1	2.84
Synopsys	1	4	13	0	2.67

Autodesk presently has a consensus target price of $321.19, indicating a potential upside of 51.76%. Synopsys has a consensus target price of $562.67, indicating a potential upside of 41.88%. Given Autodesk’s stronger consensus rating and higher possible upside, research analysts plainly believe Autodesk is more favorable than Synopsys.

Summary

Autodesk beats Synopsys on 11 of the 15 factors compared between the two stocks.

About Autodesk

Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.

About Synopsys

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as optical products, and mechatronic simulations. Further, it provides security and quality testing products, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. Additionally, the company provides intelligent orchestration solution, software risk manager, and black duck software composition analysis tools. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.