Reviewing Synopsys (SNPS) & Appian (APPN)

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Synopsys (NASDAQ: APPN) and Appian (NASDAQ:APPN) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

88.3% of Synopsys shares are held by institutional investors. Comparatively, 17.2% of Appian shares are held by institutional investors. 1.8% of Synopsys shares are held by insiders. Comparatively, 64.0% of Appian shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Synopsys and Appian, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synopsys 1 0 5 0 2.67
Appian 3 6 0 0 1.67

Synopsys currently has a consensus target price of $108.33, suggesting a potential upside of 6.16%. Appian has a consensus target price of $27.67, suggesting a potential downside of 20.97%. Given Synopsys’ stronger consensus rating and higher probable upside, equities analysts plainly believe Synopsys is more favorable than Appian.

Volatility and Risk

Synopsys has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Appian has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Valuation and Earnings

This table compares Synopsys and Appian’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synopsys $2.72 billion 5.56 $136.56 million $0.88 115.97
Appian $176.74 million 12.23 -$31.00 million ($0.61) -57.39

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

Profitability

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

Net Margins Return on Equity Return on Assets
Synopsys 1.92% 5.52% 3.13%
Appian -16.28% -81.10% -22.47%

Summary

Synopsys beats Appian on 12 of the 14 factors compared between the two stocks.

Synopsys Company Profile

Synopsys, Inc. provides electronic design automation (EDA) software products used to design and test integrated circuits (ICs). It offers Galaxy Design platform that offers IC design solutions; Verification Continuum Platform, which provides 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. The company also offers DesignWare intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip 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, it provides logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, the company offers Platform Architect tools for SoC architecture analysis and optimization; virtual prototyping solutions for creating virtual prototypes and virtualizers; and HAPS based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, it provides testing tools, services, and programs, which include security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate defects in the software development lifecycle; manufacturing solutions for semiconductor manufacturers to develop fabrication processes; and professional services and others. The company has a collaboration agreement with Arm. Synopsys, Inc. was founded in 1986 and is headquartered in Mountain View, California.

Appian Company Profile

Appian Corporation provides low-code software development platform that enables organizations to develop various applications in the United States and internationally. The company's platform automates the creation of forms, data flows, records, reports, and other software elements that are needed to be manually coded or configured. Its principal software markets include the markets for low-code development platforms, case management software, business process management, and platform-as-a-service. The company also offers professional and customer support services. Its customers include financial services, healthcare, government, telecommunications, media, energy, manufacturing, and transportation organizations. Appian Corporation was founded in 1999 and is headquartered in Reston, Virginia.

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