NetApp, Inc. (NTAP) vs Synopsys, Inc. (SNPS)

NetApp, Inc. and Synopsys, Inc. are both Software Infrastructure companies. Synopsys, Inc. is the larger, with a market value of $81.4B against $38.8B — 2.1× the size. NetApp, Inc. trades at the lower P/E: 28.0× against 74.7×. Synopsys, Inc. grew revenue faster over the last twelve months: 46.3% against 12.2%. NetApp, Inc. has the higher net margin (19.2% vs 11.4%) and the higher return on invested capital (283.9% vs 1.33%). Across the 22 metrics below, NetApp, Inc. leads on 14 and Synopsys, Inc. on 8.

Valuation

Metric NTAP SNPS Software Infrastructure median
P/E 28.02 74.69 28.02
P/S 5.33 8.66 3.07
P/B 26.37 2.62 3.36
Price to free cash flow 23.89 29.68 17.12
EV/EBITDA 18.88 32.26 14.91
EV/Sales 5.19 9.34 3.03
Earnings yield 3.57% 1.34% 0.13%
Free cash flow yield 4.19% 3.37% 1.15%

Profitability

Metric NTAP SNPS Software Infrastructure median
Gross margin 70.63% 72.38% 61.23%
Operating margin 25.02% 8.52% 0.00%
Net margin 19.19% 11.43% 0.00%
Free cash flow margin 22.32% 29.18% 1.67%
Return on equity 114.82% 3.66% 0.59%
Return on assets 13.74% 2.24% 0.00%
Return on invested capital 283.94% 1.33% 0.00%

Growth

Metric NTAP SNPS Software Infrastructure median
Revenue growth (TTM) 12.15% 46.33% 13.41%
EPS growth (last fiscal year) 11.99% (44.59%) —
Revenue growth, 5-year CAGR 3.81% 13.87% 15.81%
Net income growth, 5-year CAGR 11.82% 14.93% 0.00%

Health

Metric NTAP SNPS Software Infrastructure median
Debt to equity 1.66 0.32 0.06
Current ratio 1.24 1.34 1.55
Net debt to EBITDA (0.59) 6.25 0.08

Dividend

Metric NTAP SNPS Software Infrastructure median
Dividend yield 2.25% — 1.53%
Payout ratio 0.36 0.00 0.00

Size

Metric NTAP SNPS Software Infrastructure median
Market cap 38.75b 81.44b 835.96m

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