Palantir Technologies Inc. (PLTR) vs Synopsys, Inc. (SNPS)

Palantir Technologies Inc. and Synopsys, Inc. are both Software Infrastructure companies. Palantir Technologies Inc. is the larger, with a market value of $373.5B against $84.4B — 4.4× the size. Synopsys, Inc. trades at the lower P/E: 77.5× against 102×. Palantir Technologies Inc. grew revenue faster over the last twelve months: 87.1% against 46.3%. Palantir Technologies Inc. has the higher net margin (50.3% vs 11.4%) and the higher return on invested capital (265.3% vs 1.33%). Across the 22 metrics below, Palantir Technologies Inc. leads on 13 and Synopsys, Inc. on 9.

Valuation

Metric PLTR SNPS Software Infrastructure median
P/E 101.59 77.53 24.43
P/S 51.36 8.99 2.81
P/B 32.99 2.72 2.88
Price to free cash flow 92.33 30.81 17.94
EV/EBITDA 108.47 33.40 14.51
EV/Sales 49.94 9.67 2.91
Earnings yield 0.98% 1.29% 0.00%
Free cash flow yield 1.08% 3.25% 0.49%

Profitability

Metric PLTR SNPS Software Infrastructure median
Gross margin 84.74% 72.38% 57.45%
Operating margin 45.64% 8.52% 0.00%
Net margin 50.34% 11.43% 0.00%
Free cash flow margin 55.62% 29.18% 0.00%
Return on equity 40.69% 3.66% 0.00%
Return on assets 34.09% 2.24% 0.00%
Return on invested capital 265.31% 1.33% 0.00%

Growth

Metric PLTR SNPS Software Infrastructure median
Revenue growth (TTM) 87.06% 46.33% 14.28%
EPS growth (last fiscal year) 231.58% (44.59%) 18.26%
Revenue growth, 5-year CAGR 32.58% 13.87% 16.15%
Net income growth, 5-year CAGR 0.00% 14.93% 0.00%

Health

Metric PLTR SNPS Software Infrastructure median
Debt to equity 0.00 0.32 0.02
Current ratio 7.10 1.34 1.53
Net debt to EBITDA (4.98) 6.25 0.05

Dividend

Metric PLTR SNPS Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric PLTR SNPS Software Infrastructure median
Market cap 373.45b 84.38b 661.51m

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