MSFT vs. SNPS: Microsoft vs. Synopsys Stock Comparison
How do Microsoft (MSFT) 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
Microsoft (MSFT) and Synopsys (SNPS) both belong to the Software industry, though MSFT is classified under Systems Software while SNPS falls under Application Software.
| Profile Item | MSFT | SNPS |
|---|---|---|
| Name | Microsoft Corporation Common Stock | Synopsys Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Systems Software | Application Software |
| Market Capitalization | 3,940.41 billion USD | 86.32 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | March 13, 1986 | February 26, 1992 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | MSFT | SNPS |
|---|---|---|
| Total Return (1Y) | 10.30% | 18.77% |
| Total Return (3Y, Annualized) | 15.53% | -2.57% |
| Total Return (5Y, Annualized) | 11.01% | 6.06% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | MSFT | SNPS |
|---|---|---|
| Volatility (1Y, Annualized) | 33.91% | 45.03% |
| Beta (5Y) | 1.03 | 1.17 |
| Max Drawdown (5Y) | -37.15% | -43.02% |
| Avg. Volume (3M) | 22.95M | 2.11M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | MSFT | SNPS |
|---|---|---|
| Sharpe Ratio (1Y) | 0.18 | 0.32 |
| Sortino Ratio (1Y) | 0.28 | 0.49 |
Profitability
ROE (TTM)
Microsoft (MSFT) at 34.22% sits in the top ROE quartile, while Synopsys (SNPS) at 3.66% is closer to the peer norm — stronger capital efficiency for MSFT.
MSFT
Software & Services industry group
34.22%
- Max
- 53.85%
- MSFT
- 34.22%
- 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)
Microsoft (MSFT) at 41.17% retains a top-quartile share of revenue as profit, ahead of Synopsys (SNPS) at 11.43%, which keeps about the industry-typical share.
MSFT
Software & Services industry group
41.17%
- MSFT
- 41.17%
- Max
- 41.17%
- 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)
Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Synopsys (SNPS) at 14.52% operates around its industry’s norm.
MSFT
Software & Services industry group
49.76%
- MSFT
- 49.76%
- Max
- 46.89%
- Q3
- 17.64%
- 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 | MSFT | SNPS |
|---|---|---|
| ROE (TTM) | 34.22% | 3.66% |
| ROA (TTM) | 14.41% | 1.35% |
| Net Margin (TTM) | 41.17% | 11.43% |
| Operating Margin (TTM) | 49.76% | 14.52% |
| Gross Margin (TTM) | 67.66% | 82.92% |
Growth
Revenue Growth
Both Microsoft (MSFT) at 17.79% 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
Microsoft (MSFT) at 31.60% is around its peer norm for EPS growth, while Synopsys (SNPS) at -44.59% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | MSFT | SNPS |
|---|---|---|
| Revenue Growth (YoY) | 17.79% | 15.12% |
| Revenue Growth (3Y CAGR) | 16.12% | 15.19% |
| EPS Growth (YoY) | 31.60% | -44.59% |
| EPS Growth (3Y CAGR) | 22.86% | 8.53% |
Financial Strength
Current Ratio (MRQ)
Both Microsoft (MSFT) at 1.23 and Synopsys (SNPS) at 1.34 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
MSFT
Software & Services industry group
1.23
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- MSFT
- 1.23
- Q1
- 1.01
- 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)
Both Microsoft (MSFT) at 0.28 and Synopsys (SNPS) at 0.35 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
MSFT
Software & Services industry group
0.28
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- MSFT
- 0.28
- 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 | MSFT | SNPS |
|---|---|---|
| Current Ratio (MRQ) | 1.23 | 1.34 |
| Debt / Equity (MRQ) | 0.28 | 0.35 |
| Net Debt / EBITDA | 0.34 | 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 Microsoft (MSFT) reports a yield of 0.69%, ranking against industry peers normally.
MSFT
Software & Services industry group
0.69%
- MSFT
- 0.69%
- 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 Microsoft (MSFT) reports a payout of 19.00%, ranking against industry peers normally.
MSFT
Software & Services industry group
19.00%
- MSFT
- 19.00%
- 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 | MSFT | SNPS |
|---|---|---|
| Dividend Yield (TTM) | 0.69% | 0.00% |
| Dividend Payout Ratio (TTM) | 19.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Microsoft (MSFT) at 27.69 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.
MSFT
Software & Services industry group
27.69
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- MSFT
- 27.69
- 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)
Both Microsoft (MSFT) at 11.37 and Synopsys (SNPS) at 9.17 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
MSFT
Software & Services industry group
11.37
- Max
- 17.91
- MSFT
- 11.37
- Q3
- 8.78
- Median
- 4.25
- 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 Microsoft (MSFT) at 8.38 and Synopsys (SNPS) at 2.77 are valued close to their industries’ norm against book — neither stands out from peers.
MSFT
Software & Services industry group
8.38
- Max
- 16.63
- Q3
- 8.50
- MSFT
- 8.38
- 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 | MSFT | SNPS |
|---|---|---|
| P/E Ratio (TTM) | 27.69 | 79.59 |
| P/S Ratio (TTM) | 11.37 | 9.17 |
| P/B Ratio (MRQ) | 8.38 | 2.77 |
| Free Cash Flow Yield (TTM) | 0.08% | 3.97% |