MSFT vs. SNPS: Microsoft vs. Synopsys Stock Comparison

June 28, 2026

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.

Company profile comparison for Microsoft (MSFT) and Synopsys (SNPS)
Profile Item	MSFT	SNPS
Name	Microsoft Corp.	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	2,770.58 billion USD	87.00 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

MSFT

SNPS

Microsoft (MSFT) vs. Synopsys (SNPS): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
Total Return (1Y)	-24.42%	-8.34%

Risk Profile

Drawdown History

MSFT

SNPS

Microsoft (MSFT) vs. Synopsys (SNPS): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
Volatility (1Y, Annualized)	26.91%	56.75%
Beta (5Y)	1.15	1.22
Avg. Volume (3M)	39.09M	1.89M

Risk-Adjusted Performance

Risk-Return Positioning

MSFT 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.

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.01% sits in the top ROE quartile, while Synopsys (SNPS) at 3.82% is closer to the peer norm — stronger capital efficiency for MSFT.

MSFT

Software & Services industry group

34.01%

Max: 53.38%
MSFT: 34.01%
Q3: 16.53%
Median: 5.38%
Q1: -13.43%
Min: -55.27%

SNPS

Software & Services industry group

3.82%

Max: 53.38%
Q3: 16.53%
Median: 5.38%
SNPS: 3.82%
Q1: -13.43%
Min: -55.27%

Microsoft (MSFT) vs. Synopsys (SNPS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 39.34% retains a top-quartile share of revenue as profit, ahead of Synopsys (SNPS) at 8.91%, which keeps about the industry-typical share.

MSFT

Software & Services industry group

39.34%

Max: 44.20%
MSFT: 39.34%
Q3: 14.93%
Median: 3.32%
Q1: -5.99%
Min: -34.99%

SNPS

Software & Services industry group

8.91%

Max: 44.20%
Q3: 14.93%
SNPS: 8.91%
Median: 3.32%
Q1: -5.99%
Min: -34.99%

Microsoft (MSFT) vs. Synopsys (SNPS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Microsoft (MSFT) at 46.33% operates in the top operating margin quartile, ahead of Synopsys (SNPS) at 10.38%, which runs around its industry’s norm.

MSFT

Software & Services industry group

46.33%

Max: 60.45%
MSFT: 46.33%
Q3: 16.49%
Median: 4.46%
Q1: -12.92%
Min: -53.94%

SNPS

Software & Services industry group

10.38%

Max: 60.45%
Q3: 16.49%
SNPS: 10.38%
Median: 4.46%
Q1: -12.92%
Min: -53.94%

Microsoft (MSFT) vs. Synopsys (SNPS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
ROE (TTM)	34.01%	3.82%
ROA (TTM)	14.81%	1.49%
Net Margin (TTM)	39.34%	8.91%
Operating Margin (TTM)	46.33%	10.38%
Gross Margin (TTM)	68.31%	82.60%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
Revenue Growth (YoY)	14.93%	15.12%
Revenue Growth (3Y CAGR)	12.42%	15.19%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
EPS Growth (YoY)	15.59%	-44.59%
EPS Growth (3Y CAGR)	12.23%	8.53%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.28 and Synopsys (SNPS) at 1.43 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.28

Max: 5.55
Q3: 2.88
Median: 1.72
MSFT: 1.28
Q1: 1.07
Min: 0.03

SNPS

Software & Services industry group

1.43

Max: 5.55
Q3: 2.88
Median: 1.72
SNPS: 1.43
Q1: 1.07
Min: 0.03

Microsoft (MSFT) vs. Synopsys (SNPS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.30 and Synopsys (SNPS) at 0.36 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.30

Max: 2.31
Q3: 1.06
Median: 0.32
MSFT: 0.30
Q1: 0.06
Min: 0.00

SNPS

Software & Services industry group

0.36

Max: 2.31
Q3: 1.06
SNPS: 0.36
Median: 0.32
Q1: 0.06
Min: 0.00

Microsoft (MSFT) 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 Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
Current Ratio (MRQ)	1.28	1.43
Debt / Equity (MRQ)	0.30	0.36
Net Debt / EBITDA	0.26	4.93

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 1.01%, ranking against industry peers normally.

MSFT

Software & Services industry group

1.01%

MSFT: 1.01%
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%

Microsoft (MSFT) 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 Microsoft (MSFT) reports a payout of 20.73%, ranking against industry peers normally.

MSFT

Software & Services industry group

20.73%

MSFT: 20.73%
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%

Microsoft (MSFT) vs. Synopsys (SNPS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
Dividend Yield (TTM)	1.01%	0.00%
Dividend Payout Ratio (TTM)	20.73%	0.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 22.23 is near its industry’s usual P/E ratio, while Synopsys (SNPS) at 104.21 sits in the richer quartile — SNPS needs stronger growth or earnings quality to justify the premium.

MSFT

Software & Services industry group

22.23

Max: 114.57
Q3: 59.78
Median: 29.42
MSFT: 22.23
Q1: 16.20
Min: 0.40

SNPS

Software & Services industry group

104.21

Max: 114.57
SNPS: 104.21
Q3: 59.78
Median: 29.42
Q1: 16.20
Min: 0.40

Microsoft (MSFT) vs. Synopsys (SNPS): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Microsoft (MSFT) at 8.71 is priced about in line with its industry on P/S ratio, while Synopsys (SNPS) at 10.02 sits in the pricier quartile — SNPS costs more per dollar of sales.

MSFT

Software & Services industry group

8.71

Max: 17.86
Q3: 8.79
MSFT: 8.71
Median: 4.10
Q1: 2.13
Min: 0.03

SNPS

Software & Services industry group

10.02

Max: 17.86
SNPS: 10.02
Q3: 8.79
Median: 4.10
Q1: 2.13
Min: 0.03

Microsoft (MSFT) 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 Microsoft (MSFT) at 6.69 and Synopsys (SNPS) at 2.85 are valued close to their industries’ norm against book — neither stands out from peers.

MSFT

Software & Services industry group

6.69

Max: 17.72
Q3: 8.62
MSFT: 6.69
Median: 3.82
Q1: 1.97
Min: -7.65

SNPS

Software & Services industry group

2.85

Max: 17.72
Q3: 8.62
Median: 3.82
SNPS: 2.85
Q1: 1.97
Min: -7.65

Microsoft (MSFT) vs. Synopsys (SNPS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Synopsys (SNPS)
Metric	MSFT	SNPS
P/E Ratio (TTM)	22.23	104.21
P/S Ratio (TTM)	8.71	10.02
P/B Ratio (MRQ)	6.69	2.85
Free Cash Flow Yield (TTM)	1.34%	4.07%