APP vs. SNPS: A Head-to-Head Stock Comparison
Here’s a clear look at APP and SNPS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | APP | SNPS |
|---|---|---|
| Company Name | AppLovin Corporation | Synopsys, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Application Software |
| Market Capitalization | 160.72 billion USD | 98.88 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | April 15, 2021 | February 26, 1992 |
| Security Type | Common Stock | Common Stock |
APP’s market capitalization (160.72 billion USD) is substantially larger than SNPS’s (98.88 billion USD), indicating a significant difference in their market valuations.
Historical Performance
This chart compares the performance of APP and SNPS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | APP | SNPS |
|---|---|---|
| 5-Day Price Return | 0.06% | 2.72% |
| 13-Week Price Return | 17.63% | 20.92% |
| 26-Week Price Return | -24.32% | 15.81% |
| 52-Week Price Return | 45.62% | 6.89% |
| Month-to-Date Return | 7.18% | 6.96% |
| Year-to-Date Return | -29.00% | 9.89% |
| 10-Day Avg. Volume | 4.98M | 1.49M |
| 3-Month Avg. Volume | 5.59M | 2.03M |
| 3-Month Volatility | 83.68% | 44.41% |
| Beta | 2.40 | 1.27 |
APP’s beta of 2.40 points to significantly higher volatility compared to SNPS (beta: 1.27), suggesting APP has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
APP
222.04%
Software Industry
- Max
- 62.31%
- Q3
- 22.20%
- Median
- 7.37%
- Q1
- -6.27%
- Min
- -44.49%
APP’s Return on Equity of 222.04% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
SNPS
4.57%
Software Industry
- Max
- 62.31%
- Q3
- 22.20%
- Median
- 7.37%
- Q1
- -6.27%
- Min
- -44.49%
SNPS’s Return on Equity of 4.57% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
APP
64.29%
Software Industry
- Max
- 44.20%
- Q3
- 17.73%
- Median
- 7.82%
- Q1
- -3.30%
- Min
- -33.25%
APP’s Net Profit Margin of 64.29% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
SNPS
13.76%
Software Industry
- Max
- 44.20%
- Q3
- 17.73%
- Median
- 7.82%
- Q1
- -3.30%
- Min
- -33.25%
SNPS’s Net Profit Margin of 13.76% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
APP
77.09%
Software Industry
- Max
- 49.62%
- Q3
- 18.30%
- Median
- 6.76%
- Q1
- -3.80%
- Min
- -34.31%
APP’s Operating Profit Margin of 77.09% is exceptionally high, placing it well above the typical range for the Software industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
SNPS
17.67%
Software Industry
- Max
- 49.62%
- Q3
- 18.30%
- Median
- 6.76%
- Q1
- -3.80%
- Min
- -34.31%
SNPS’s Operating Profit Margin of 17.67% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | APP | SNPS |
|---|---|---|
| Return on Equity (TTM) | 222.04% | 4.57% |
| Return on Assets (TTM) | 58.13% | 2.63% |
| Net Profit Margin (TTM) | 64.29% | 13.76% |
| Operating Profit Margin (TTM) | 77.09% | 17.67% |
| Gross Profit Margin (TTM) | 88.37% | 75.14% |
Financial Strength
Current Ratio (MRQ)
APP
3.24
Software Industry
- Max
- 4.59
- Q3
- 2.57
- Median
- 1.65
- Q1
- 1.12
- Min
- 0.47
APP’s Current Ratio of 3.24 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
SNPS
1.36
Software Industry
- Max
- 4.59
- Q3
- 2.57
- Median
- 1.65
- Q1
- 1.12
- Min
- 0.47
SNPS’s Current Ratio of 1.36 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
APP
1.49
Software Industry
- Max
- 2.70
- Q3
- 1.14
- Median
- 0.33
- Q1
- 0.00
- Min
- 0.00
APP’s leverage is in the upper quartile of the Software industry, with a Debt-to-Equity Ratio of 1.49. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
SNPS
0.33
Software Industry
- Max
- 2.70
- Q3
- 1.14
- Median
- 0.33
- Q1
- 0.00
- Min
- 0.00
SNPS’s Debt-to-Equity Ratio of 0.33 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
APP
20.09
Software Industry
- Max
- 45.58
- Q3
- 11.88
- Median
- -0.62
- Q1
- -14.80
- Min
- -53.00
APP’s Interest Coverage Ratio of 20.09 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
SNPS
8.90
Software Industry
- Max
- 45.58
- Q3
- 11.88
- Median
- -0.62
- Q1
- -14.80
- Min
- -53.00
SNPS’s Interest Coverage Ratio of 8.90 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | APP | SNPS |
|---|---|---|
| Current Ratio (MRQ) | 3.24 | 1.36 |
| Quick Ratio (MRQ) | 3.16 | 1.28 |
| Debt-to-Equity Ratio (MRQ) | 1.49 | 0.33 |
| Interest Coverage Ratio (TTM) | 20.09 | 8.90 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | APP | SNPS |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 24.15% | 65.52% |
| Revenue Growth (TTM vs Prior YoY) | 40.00% | 31.88% |
| 3-Year Revenue CAGR | 24.84% | 15.19% |
| 5-Year Revenue CAGR | 30.45% | 13.87% |
EPS Growth
EPS Growth at a Glance
| Symbol | APP | SNPS |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 112.95% | -82.01% |
| EPS Growth (TTM vs Prior YoY) | 110.27% | -52.36% |
| 3-Year EPS CAGR | -- | 8.52% |
| 5-Year EPS CAGR | -- | 13.52% |
Dividend
Dividend Yield (TTM)
APP
0.00%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
SNPS
0.00%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SNPS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
APP
0.00%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
SNPS
0.00%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SNPS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | APP | SNPS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
APP
40.59
Software Industry
- Max
- 103.82
- Q3
- 62.00
- Median
- 30.25
- Q1
- 16.58
- Min
- 0.39
APP’s P/E Ratio of 40.59 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
SNPS
90.00
Software Industry
- Max
- 103.82
- Q3
- 62.00
- Median
- 30.25
- Q1
- 16.58
- Min
- 0.39
A P/E Ratio of 90.00 places SNPS in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
APP
26.10
Software Industry
- Max
- 15.72
- Q3
- 8.24
- Median
- 4.08
- Q1
- 2.31
- Min
- 0.45
With a P/S Ratio of 26.10, APP trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
SNPS
12.38
Software Industry
- Max
- 15.72
- Q3
- 8.24
- Median
- 4.08
- Q1
- 2.31
- Min
- 0.45
SNPS’s P/S Ratio of 12.38 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
APP
56.63
Software Industry
- Max
- 20.48
- Q3
- 10.83
- Median
- 5.41
- Q1
- 2.66
- Min
- 0.32
At 56.63, APP’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
SNPS
2.87
Software Industry
- Max
- 20.48
- Q3
- 10.83
- Median
- 5.41
- Q1
- 2.66
- Min
- 0.32
SNPS’s P/B Ratio of 2.87 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | APP | SNPS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 40.59 | 90.00 |
| Price-to-Sales Ratio (TTM) | 26.10 | 12.38 |
| Price-to-Book Ratio (MRQ) | 56.63 | 2.87 |
| Price-to-Free Cash Flow Ratio (TTM) | 35.95 | 60.21 |