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 $461.6B against $81.4B — 5.7× the size. Synopsys, Inc. trades at the lower P/E: 74.7× against 151×. Palantir Technologies Inc. grew revenue faster over the last twelve months: 78.9% against 46.3%. Palantir Technologies Inc. has the higher net margin (49.0% vs 11.4%) and the higher return on invested capital (346.1% 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 150.53 74.69 28.02
P/S 73.94 8.66 3.07
P/B 46.05 2.62 3.36
Price to free cash flow 135.54 29.68 17.12
EV/EBITDA 167.48 32.26 14.91
EV/Sales 72.44 9.34 3.03
Earnings yield 0.66% 1.34% 0.13%
Free cash flow yield 0.74% 3.37% 1.15%

Profitability

Metric PLTR SNPS Software Infrastructure median
Gross margin 84.80% 72.38% 61.23%
Operating margin 42.80% 8.52% 0.00%
Net margin 49.00% 11.43% 0.00%
Free cash flow margin 54.55% 29.18% 1.67%
Return on equity 37.92% 3.66% 0.59%
Return on assets 31.68% 2.24% 0.00%
Return on invested capital 346.09% 1.33% 0.00%

Growth

Metric PLTR SNPS Software Infrastructure median
Revenue growth (TTM) 78.92% 46.33% 13.41%
EPS growth (last fiscal year) 231.58% (44.59%) —
Revenue growth, 5-year CAGR 32.58% 13.87% 15.81%
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 0.06
Current ratio 7.23 1.34 1.55
Net debt to EBITDA (4.98) 6.25 0.08

Dividend

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

Size

Metric PLTR SNPS Software Infrastructure median
Market cap 461.58b 81.44b 835.96m

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