Simulations Plus (NASDAQ:SLP – Get Free Report) and Synopsys (NASDAQ:SNPS – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Earnings & Valuation
This table compares Simulations Plus and Synopsys”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Simulations Plus | $79.18 million | 3.90 | -$64.72 million | ($3.13) | -4.88 |
| Synopsys | $7.05 billion | 14.52 | $1.33 billion | $6.44 | 83.01 |
Volatility and Risk
Simulations Plus has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Institutional and Insider Ownership
78.1% of Simulations Plus shares are owned by institutional investors. Comparatively, 85.5% of Synopsys shares are owned by institutional investors. 19.1% of Simulations Plus shares are owned by insiders. Comparatively, 0.6% of Synopsys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Simulations Plus and Synopsys, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Simulations Plus | 1 | 6 | 3 | 0 | 2.20 |
| Synopsys | 1 | 8 | 8 | 0 | 2.41 |
Simulations Plus presently has a consensus price target of $24.40, indicating a potential upside of 59.69%. Synopsys has a consensus price target of $539.00, indicating a potential upside of 0.83%. Given Simulations Plus’ higher probable upside, equities analysts plainly believe Simulations Plus is more favorable than Synopsys.
Profitability
This table compares Simulations Plus and Synopsys’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Simulations Plus | -77.96% | 16.21% | 15.00% |
| Synopsys | 13.76% | 6.83% | 3.93% |
Summary
Synopsys beats Simulations Plus on 9 of the 14 factors compared between the two stocks.
About Simulations Plus
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.
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.
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