Okta, Inc. (OKTA) vs Synopsys, Inc. (SNPS)

Okta, Inc. and Synopsys, Inc. are both Software Infrastructure companies. Synopsys, Inc. is the larger, with a market value of $81.4B against $36.2B — 2.2× the size. Synopsys, Inc. trades at the lower P/E: 74.7× against 116×. Synopsys, Inc. grew revenue faster over the last twelve months: 46.3% against 11.2%. Synopsys, Inc. has the higher net margin (11.4% vs 9.63%) and the lower return on invested capital (1.33% vs 3.10%). Across the 22 metrics below, Synopsys, Inc. leads on 12 and Okta, Inc. on 10.

Valuation

Metric OKTA SNPS Software Infrastructure median
P/E 115.56 74.69 28.02
P/S 11.08 8.66 3.07
P/B 4.88 2.62 3.36
Price to free cash flow 35.53 29.68 17.12
EV/EBITDA 65.67 32.26 14.91
EV/Sales 10.56 9.34 3.03
Earnings yield 0.87% 1.34% 0.13%
Free cash flow yield 2.81% 3.37% 1.15%

Profitability

Metric OKTA SNPS Software Infrastructure median
Gross margin 78.13% 72.38% 61.23%
Operating margin 7.55% 8.52% 0.00%
Net margin 9.63% 11.43% 0.00%
Free cash flow margin 31.17% 29.18% 1.67%
Return on equity 4.31% 3.66% 0.59%
Return on assets 3.17% 2.24% 0.00%
Return on invested capital 3.10% 1.33% 0.00%

Growth

Metric OKTA SNPS Software Infrastructure median
Revenue growth (TTM) 11.22% 46.33% 13.41%
EPS growth (last fiscal year) 719.26% (44.59%) —
Revenue growth, 5-year CAGR 28.44% 13.87% 15.81%
Net income growth, 5-year CAGR 0.00% 14.93% 0.00%

Health

Metric OKTA SNPS Software Infrastructure median
Debt to equity 0.00 0.32 0.06
Current ratio 1.53 1.34 1.55
Net debt to EBITDA (5.43) 6.25 0.08

Dividend

Metric OKTA SNPS Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric OKTA SNPS Software Infrastructure median
Market cap 36.24b 81.44b 835.96m

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