Palo Alto Networks, Inc. (PANW) vs Synopsys, Inc. (SNPS)

Palo Alto Networks, Inc. and Synopsys, Inc. are both Software Infrastructure companies. Palo Alto Networks, Inc. is the larger, with a market value of $316.8B against $81.4B — 3.9× the size. Synopsys, Inc. trades at the lower P/E: 74.7× against 706×. Synopsys, Inc. grew revenue faster over the last twelve months: 46.3% against 24.5%. Synopsys, Inc. has the higher net margin (11.4% vs 2.67%) and the lower return on invested capital (1.33% vs 1.66%). Across the 22 metrics below, Synopsys, Inc. leads on 17 and Palo Alto Networks, Inc. on 5.

Valuation

Metric PANW SNPS Software Infrastructure median
P/E 706.38 74.69 28.02
P/S 24.43 8.66 3.07
P/B 10.20 2.62 3.36
Price to free cash flow 68.18 29.68 17.12
EV/EBITDA 129.23 32.26 14.91
EV/Sales 24.33 9.34 3.03
Earnings yield 0.14% 1.34% 0.13%
Free cash flow yield 1.47% 3.37% 1.15%

Profitability

Metric PANW SNPS Software Infrastructure median
Gross margin 70.36% 72.38% 61.23%
Operating margin 6.05% 8.52% 0.00%
Net margin 2.67% 11.43% 0.00%
Free cash flow margin 35.83% 29.18% 1.67%
Return on equity 1.74% 3.66% 0.59%
Return on assets 0.85% 2.24% 0.00%
Return on invested capital 1.66% 1.33% 0.00%

Growth

Metric PANW SNPS Software Infrastructure median
Revenue growth (TTM) 24.50% 46.33% 13.41%
EPS growth (last fiscal year) (75.00%) (44.59%) —
Revenue growth, 5-year CAGR 21.95% 13.87% 15.81%
Net income growth, 5-year CAGR 0.00% 14.93% 0.00%

Health

Metric PANW SNPS Software Infrastructure median
Debt to equity 0.06 0.32 0.06
Current ratio 0.87 1.34 1.55
Net debt to EBITDA (0.60) 6.25 0.08

Dividend

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

Size

Metric PANW SNPS Software Infrastructure median
Market cap 316.80b 81.44b 835.96m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack