Comparing Synopsys (NASDAQ:SNPS) and 3D Systems (NASDAQ:DDD)

3D Systems (NYSE:DDD) and Synopsys (NASDAQ:SNPS) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

70.4% of 3D Systems shares are held by institutional investors. Comparatively, 91.8% of Synopsys shares are held by institutional investors. 3.3% of 3D Systems shares are held by insiders. Comparatively, 1.8% of Synopsys shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares 3D Systems and Synopsys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
3D Systems -7.26% -6.26% -4.17%
Synopsys 18.74% 16.88% 9.89%

Risk & Volatility

3D Systems has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for 3D Systems and Synopsys, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3D Systems 1 7 1 0 2.00
Synopsys 0 2 6 1 2.89

3D Systems presently has a consensus price target of $11.56, indicating a potential upside of 31.24%. Synopsys has a consensus price target of $124.00, indicating a potential upside of 0.02%. Given 3D Systems’ higher possible upside, research analysts clearly believe 3D Systems is more favorable than Synopsys.

Valuation and Earnings

This table compares 3D Systems and Synopsys’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3D Systems $687.66 million 1.49 -$45.51 million ($0.37) -23.81
Synopsys $3.12 billion 5.95 $432.51 million $2.82 43.96

Synopsys has higher revenue and earnings than 3D Systems. 3D Systems is trading at a lower price-to-earnings ratio than Synopsys, indicating that it is currently the more affordable of the two stocks.

Summary

Synopsys beats 3D Systems on 12 of the 15 factors compared between the two stocks.

About 3D Systems

3D Systems Corporation, through its subsidiaries, provides three-dimensional (3D) printing products and services worldwide. The company offers 3D printers, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, and color jet printers that transform data input generated by 3D design software, CAD software, or other 3D design tools into printed parts under the Accura, DuraForm, LaserForm, CastForm, and VisiJet brand names. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental, and Class IV bio-compatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as products for product design, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection. Further, it offers 3D Sprint and 3DXpert, a proprietary software to prepare and optimize CAD data and manage the additive manufacturing processes, which provides automated support building and placement, build platform management, and print queue management; and 3D virtual reality simulators and simulator modules for medical applications, as well as digitizing scanners for medical and mechanical applications. Additionally, the company provides warranty, maintenance, and training services; on-demand manufacturing solutions; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable good, government, defense, technology, jewelry, electronic, education, consumer good, energy, and other industries through direct sales force, as well as partner channels and distributors. 3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill, South Carolina.

About Synopsys

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits (ICs). It offers Fusion Design Platform, a digital design implementation solution; Verification Continuum Platform, which provides virtual prototyping, static and formal verification, simulation, emulation, field-programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. The company also offers intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating point components, and ARM AMBA interconnect fabric and peripherals. In addition, it provides logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, the company offers Platform Architect tools for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, it provides testing tools, services, and programs, which include security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate defects in the software development lifecycle; manufacturing solutions for semiconductor manufacturers to develop fabrication processes; and professional and other services. Synopsys, Inc. has collaboration with Palma Ceia SemiDesign, Inc. to provide ready-to-use NB-IoT solution. The company was founded in 1986 and is headquartered in Mountain View, California.

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