Reviewing Synopsys (NASDAQ:SNPS) & Code Rebel (OTCMKTS:CDRBQ)

Synopsys (NASDAQ:SNPS) and Code Rebel (OTCMKTS:CDRBQ) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Valuation and Earnings

This table compares Synopsys and Code Rebel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synopsys	$6.13 billion	14.82	$2.26 billion	$12.74	38.37
Code Rebel	N/A	N/A	N/A	N/A	N/A

Synopsys has higher revenue and earnings than Code Rebel.

Profitability

This table compares Synopsys and Code Rebel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synopsys	31.04%	10.82%	6.16%
Code Rebel	N/A	N/A	N/A

Volatility and Risk

Synopsys has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Code Rebel has a beta of 94.56, meaning that its stock price is 9,356% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Synopsys and Code Rebel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synopsys	3	4	11	0	2.44
Code Rebel	0	0	0	0	0.00

Synopsys currently has a consensus target price of $585.33, suggesting a potential upside of 19.75%. Given Synopsys’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Synopsys is more favorable than Code Rebel.

Institutional and Insider Ownership

85.5% of Synopsys shares are held by institutional investors. 0.6% of Synopsys shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Synopsys beats Code Rebel on 9 of the 10 factors compared between the two stocks.

About Synopsys

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers 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. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) 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, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as optical products, and mechatronic simulations. Further, it provides security and quality testing products, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. Additionally, the company provides intelligent orchestration solution, software risk manager, and black duck software composition analysis tools. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

About Code Rebel

Code Rebel Corporation operates as a software and information technology (IT) services company. It operates in two segments, Software and IT Services. The Software segment develops, markets, and licenses interactive remote application terminal services solution (iRAPP). The iRAPP allows personal computers users to use applications on a single Mac remote desktop simultaneously via the iRAPP client or any standard compliant remote desktop protocol client. This segment offers iRAPP client-side products for Mac OS X and Windows applications; iRAPP terminal server products, including iRAPP-single-user remote desktop and iRAPP-TS multiple-user terminal server for Mac OS X applications; and iRAPP access products, such as iRAPP Load Balancer and iRAPP Gateway. The IT Services segment provides Independent Software Vendor relationships (ISVs)/channel partner platforms, which provide project management, application, and technical consulting, as well as database administration for implementing projects and managed-services engagements; and professional services consulting that implements, upgrades, and maintains software packages those ISVs offer to their clients. Code Rebel Corporation was founded in 2007 and is based in Kahului, Hawaii.