Oracle Corporation (ORCL) vs Synopsys, Inc. (SNPS)

Oracle Corporation and Synopsys, Inc. are both Software Infrastructure companies. Oracle Corporation is the larger, with a market value of $423.0B against $81.4B — 5.2× the size. Oracle Corporation trades at the lower P/E: 21.2× against 74.7×. Synopsys, Inc. grew revenue faster over the last twelve months: 46.3% against 21.6%. Oracle Corporation has the higher net margin (26.1% vs 11.4%) and the higher return on invested capital (9.75% vs 1.33%). Across the 21 metrics below, Oracle Corporation leads on 12 and Synopsys, Inc. on 9.

Valuation

Metric ORCL SNPS Software Infrastructure median
P/E 21.16 74.69 28.02
P/S 5.67 8.66 3.07
P/B 6.53 2.62 3.36
Price to free cash flow n/m 29.68 17.12
EV/EBITDA 14.36 32.26 14.91
EV/Sales 6.79 9.34 3.03
Earnings yield 4.73% 1.34% 0.13%
Free cash flow yield (7.06%) 3.37% 1.15%

Profitability

Metric ORCL SNPS Software Infrastructure median
Gross margin 63.96% 72.38% 61.23%
Operating margin 32.12% 8.52% 0.00%
Net margin 26.10% 11.43% 0.00%
Free cash flow margin (40.01%) 29.18% 1.67%
Return on equity 43.12% 3.66% 0.59%
Return on assets 7.75% 2.24% 0.00%
Return on invested capital 9.75% 1.33% 0.00%

Growth

Metric ORCL SNPS Software Infrastructure median
Revenue growth (TTM) 21.62% 46.33% 13.41%
EPS growth (last fiscal year) 34.33% (44.59%) —
Revenue growth, 5-year CAGR 10.72% 13.87% 15.81%
Net income growth, 5-year CAGR 4.32% 14.93% 0.00%

Health

Metric ORCL SNPS Software Infrastructure median
Debt to equity 1.75 0.32 0.06
Current ratio 1.17 1.34 1.55
Net debt to EBITDA 3.03 6.25 0.08

Dividend

Metric ORCL SNPS Software Infrastructure median
Dividend yield 1.24% — 1.53%
Payout ratio 0.43 0.00 0.00

Size

Metric ORCL SNPS Software Infrastructure median
Market cap 423.02b 81.44b 835.96m

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