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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.

Company profile comparison for Microsoft (MSFT) and Synopsys (SNPS)
Profile ItemMSFTSNPS
NameMicrosoft Corporation Common StockSynopsys Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization3,940.41 billion USD86.32 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986February 26, 1992
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
SNPS
GSPC
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Microsoft (MSFT) 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 Microsoft (MSFT) and Synopsys (SNPS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Synopsys (SNPS)
MetricMSFTSNPS
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

MSFT
SNPS
GSPC
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Microsoft (MSFT) 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 Microsoft (MSFT) and Synopsys (SNPS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Synopsys (SNPS)
MetricMSFTSNPS
Volatility (1Y, Annualized)33.91%45.03%
Beta (5Y)1.031.17
Max Drawdown (5Y)-37.15%-43.02%
Avg. Volume (3M)22.95M2.11M

Risk-Adjusted Performance

Risk-Return Positioning

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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.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and Synopsys (SNPS)
MetricMSFTSNPS
Sharpe Ratio (1Y)0.180.32
Sortino Ratio (1Y)0.280.49

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

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

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%
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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)
MetricMSFTSNPS
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.

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

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.

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

Growth Metrics

Growth metrics for Microsoft (MSFT) and Synopsys (SNPS)
MetricMSFTSNPS
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
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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 0.28 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
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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)
MetricMSFTSNPS
Current Ratio (MRQ)1.231.34
Debt / Equity (MRQ)0.280.35
Net Debt / EBITDA0.343.49

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

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
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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 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
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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)
MetricMSFTSNPS
P/E Ratio (TTM)27.6979.59
P/S Ratio (TTM)11.379.17
P/B Ratio (MRQ)8.382.77
Free Cash Flow Yield (TTM)0.08%3.97%