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IBM vs. SNPS: IBM vs. Synopsys Stock Comparison

How do IBM (IBM) and Synopsys (SNPS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

IBM (IBM) and Synopsys (SNPS) both fall under the Software & Services industry group, but IBM is classified in IT Services while SNPS is classified in Software.

Company profile comparison for IBM (IBM) and Synopsys (SNPS)
Profile ItemIBMSNPS
NameInternational Business Machines CorporationSynopsys Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesApplication Software
Market Capitalization231.55 billion USD86.32 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962February 26, 1992
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
SNPS
GSPC
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IBM (IBM) vs. Synopsys (SNPS), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for IBM (IBM) and Synopsys (SNPS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for IBM (IBM) and Synopsys (SNPS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
Total Return (1Y)-16.98%18.77%
Total Return (3Y, Annualized)22.40%-2.57%
Total Return (5Y, Annualized)19.64%6.06%

Risk Profile

Drawdown History

IBM
SNPS
GSPC
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IBM (IBM) vs. Synopsys (SNPS), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for IBM (IBM) and Synopsys (SNPS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
Volatility (1Y, Annualized)48.48%45.03%
Beta (5Y)0.791.17
Max Drawdown (5Y)-37.50%-43.02%
Avg. Volume (3M)5.30M2.11M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and SNPS are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
Sharpe Ratio (1Y)-0.440.32
Sortino Ratio (1Y)-0.560.49

Profitability

ROE (TTM)

IBM (IBM) at 34.77% sits in the top ROE quartile, while Synopsys (SNPS) at 3.66% is closer to the peer norm — stronger capital efficiency for IBM.

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

SNPS

Software & Services industry group

3.66%

Max
53.85%
Q3
17.90%
Median
6.59%
SNPS
3.66%
Q1
-9.59%
Min
-50.52%
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

IBM (IBM) at 15.99% retains a top-quartile share of revenue as profit, ahead of Synopsys (SNPS) at 11.43%, which keeps about the industry-typical share.

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

SNPS

Software & Services industry group

11.43%

Max
41.17%
Q3
15.28%
SNPS
11.43%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both IBM (IBM) at 16.97% and Synopsys (SNPS) at 14.52% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%

SNPS

Software & Services industry group

14.52%

Max
46.89%
Q3
17.64%
SNPS
14.52%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
ROE (TTM)34.77%3.66%
ROA (TTM)5.33%1.35%
Net Margin (TTM)15.99%11.43%
Operating Margin (TTM)16.97%14.52%
Gross Margin (TTM)57.97%82.92%

Growth

Revenue Growth

Both IBM (IBM) at 7.62% and Synopsys (SNPS) at 15.12% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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IBM (IBM) vs. Synopsys (SNPS): A comparison of their Revenue Growth across different time periods.

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Synopsys (SNPS) at -44.59% is in the bottom quartile, showing a clear gap in earnings momentum.

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IBM (IBM) vs. Synopsys (SNPS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
Revenue Growth (YoY)7.62%15.12%
Revenue Growth (3Y CAGR)3.72%15.19%
EPS Growth (YoY)73.72%-44.59%
EPS Growth (3Y CAGR)83.76%8.53%

Financial Strength

Current Ratio (MRQ)

Synopsys (SNPS) at 1.34 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03

SNPS

Software & Services industry group

1.34

Max
5.11
Q3
2.77
Median
1.67
SNPS
1.34
Q1
1.01
Min
0.03
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Synopsys (SNPS) at 0.35 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00

SNPS

Software & Services industry group

0.35

Max
2.52
Q3
1.13
Median
0.40
SNPS
0.35
Q1
0.07
Min
0.00
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
Current Ratio (MRQ)0.861.34
Debt / Equity (MRQ)1.850.35
Net Debt / EBITDA3.373.49

Dividends

Dividend Yield (TTM)

Synopsys (SNPS) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.73%, ranking against industry peers normally.

IBM

Software & Services industry group

2.73%

IBM
2.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SNPS

Software & Services industry group

0.00%

SNPS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Synopsys (SNPS) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a payout of 57.51%, ranking against industry peers normally.

IBM

Software & Services industry group

57.51%

IBM
57.51%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SNPS

Software & Services industry group

0.00%

SNPS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
Dividend Yield (TTM)2.73%0.00%
Dividend Payout Ratio (TTM)57.51%0.00%

Valuation

P/E Ratio (TTM)

IBM (IBM) at 20.90 is near its industry’s usual P/E ratio, while Synopsys (SNPS) at 79.59 sits in the richer quartile — SNPS needs stronger growth or earnings quality to justify the premium.

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69

SNPS

Software & Services industry group

79.59

Max
112.94
SNPS
79.59
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while Synopsys (SNPS) at 9.17 sits in the pricier quartile — SNPS costs more per dollar of sales.

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02

SNPS

Software & Services industry group

9.17

Max
17.91
SNPS
9.17
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both IBM (IBM) at 6.52 and Synopsys (SNPS) at 2.77 are valued close to their industries’ norm against book — neither stands out from peers.

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90

SNPS

Software & Services industry group

2.77

Max
16.63
Q3
8.50
Median
4.30
SNPS
2.77
Q1
1.92
Min
-3.90
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IBM (IBM) vs. Synopsys (SNPS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Synopsys (SNPS)
MetricIBMSNPS
P/E Ratio (TTM)20.9079.59
P/S Ratio (TTM)3.319.17
P/B Ratio (MRQ)6.522.77
Free Cash Flow Yield (TTM)5.34%3.97%