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.
| Profile Item | IBM | SNPS |
|---|---|---|
| Name | International Business Machines Corporation | Synopsys Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | Software |
| GICS Sub-Industry | IT Consulting & Other Services | Application Software |
| Market Capitalization | 231.55 billion USD | 86.32 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | January 2, 1962 | February 26, 1992 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | IBM | SNPS |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | IBM | SNPS |
|---|---|---|
| Volatility (1Y, Annualized) | 48.48% | 45.03% |
| Beta (5Y) | 0.79 | 1.17 |
| Max Drawdown (5Y) | -37.50% | -43.02% |
| Avg. Volume (3M) | 5.30M | 2.11M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | IBM | SNPS |
|---|---|---|
| Sharpe Ratio (1Y) | -0.44 | 0.32 |
| Sortino Ratio (1Y) | -0.56 | 0.49 |
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%
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%
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%
Profitability Metrics
| Metric | IBM | SNPS |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | IBM | SNPS |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | IBM | SNPS |
|---|---|---|
| Current Ratio (MRQ) | 0.86 | 1.34 |
| Debt / Equity (MRQ) | 1.85 | 0.35 |
| Net Debt / EBITDA | 3.37 | 3.49 |
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%
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%
Dividend Metrics
| Metric | IBM | SNPS |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | IBM | SNPS |
|---|---|---|
| P/E Ratio (TTM) | 20.90 | 79.59 |
| P/S Ratio (TTM) | 3.31 | 9.17 |
| P/B Ratio (MRQ) | 6.52 | 2.77 |
| Free Cash Flow Yield (TTM) | 5.34% | 3.97% |