Seek Returns

PANW vs. SNPS: Palo Alto Networks vs. Synopsys Stock Comparison

How do Palo Alto Networks (PANW) 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

Palo Alto Networks (PANW) and Synopsys (SNPS) both belong to the Software industry, though PANW is classified under Systems Software while SNPS falls under Application Software.

Company profile comparison for Palo Alto Networks (PANW) and Synopsys (SNPS)
Profile ItemPANWSNPS
NamePalo Alto Networks, Inc.Synopsys, Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization247.92 billion USD87.00 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJuly 20, 2012February 26, 1992
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

PANW
SNPS
Loading price history…
Palo Alto Networks (PANW) 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 Palo Alto Networks (PANW) and Synopsys (SNPS). Returns over one year are annualized.

Performance Metrics

Price performance metrics for Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
Total Return (1Y)50.34%-8.34%

Risk Profile

Drawdown History

PANW
SNPS
Loading price history…
Palo Alto Networks (PANW) 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 Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
Volatility (1Y, Annualized)39.30%56.75%
Beta (5Y)0.911.22
Avg. Volume (3M)8.29M1.89M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
PANW 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)

Both Palo Alto Networks (PANW) at 4.83% and Synopsys (SNPS) at 3.82% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

PANW

Software & Services industry group

4.83%

Max
53.38%
Q3
16.53%
Median
5.38%
PANW
4.83%
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%
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both Palo Alto Networks (PANW) at 7.95% and Synopsys (SNPS) at 8.91% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

PANW

Software & Services industry group

7.95%

Max
44.20%
Q3
14.93%
PANW
7.95%
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%
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Palo Alto Networks (PANW) reports a negative operating margin of -2.47%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Synopsys (SNPS) reports 10.38%, ranking against industry peers normally.

PANW

Software & Services industry group

-2.47%

Max
60.45%
Q3
16.49%
Median
4.46%
PANW
-2.47%
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%
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
ROE (TTM)4.83%3.82%
ROA (TTM)1.77%1.49%
Net Margin (TTM)7.95%8.91%
Operating Margin (TTM)-2.47%10.38%
Gross Margin (TTM)71.96%82.60%

Growth

Revenue Growth

Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their Revenue Growth across different time periods.

Revenue Growth Metrics

Revenue growth metrics for Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
Revenue Growth (YoY)14.87%15.12%
Revenue Growth (3Y CAGR)18.79%15.19%

EPS Growth

Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their EPS Growth across different time periods.

EPS Growth Metrics

EPS growth metrics for Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
EPS Growth (YoY)-56.04%-44.59%
EPS Growth (3Y CAGR)--8.53%

Financial Strength

Current Ratio (MRQ)

Synopsys (SNPS) at 1.43 keeps current ratio within its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PANW.

PANW

Software & Services industry group

0.86

Max
5.55
Q3
2.88
Median
1.72
Q1
1.07
PANW
0.86
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
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Palo Alto Networks (PANW) at 0.08 and Synopsys (SNPS) at 0.36 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

PANW

Software & Services industry group

0.08

Max
2.31
Q3
1.06
Median
0.32
PANW
0.08
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
Loading chart…
Palo Alto Networks (PANW) 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 Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
Current Ratio (MRQ)0.861.43
Debt / Equity (MRQ)0.080.36
Net Debt / EBITDA-0.664.93

Dividends

Dividend Yield (TTM)

Neither Palo Alto Networks (PANW) nor Synopsys (SNPS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

PANW

Software & Services industry group

0.00%

PANW
0.00%
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%
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Palo Alto Networks (PANW) nor Synopsys (SNPS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

PANW

Software & Services industry group

0.00%

PANW
0.00%
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%
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Both look expensive on trailing earnings: Synopsys (SNPS) at 104.21 sits in the richer P/E ratio quartile, and Palo Alto Networks (PANW) at 266.84 is richer still, above its industry range.

PANW

Software & Services industry group

266.84

PANW
266.84
Max
114.57
Q3
59.78
Median
29.42
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
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: Synopsys (SNPS) at 10.02 sits in the upper P/S ratio quartile, and Palo Alto Networks (PANW) at 23.37 prices even higher, above its industry range.

PANW

Software & Services industry group

23.37

PANW
23.37
Max
17.86
Q3
8.79
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
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Synopsys (SNPS) at 2.85 is valued about in line with its industry on P/B ratio, while Palo Alto Networks (PANW) at 8.94 carries an above-peer premium to book — PANW is pricier on assets.

PANW

Software & Services industry group

8.94

Max
17.72
PANW
8.94
Q3
8.62
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
Loading chart…
Palo Alto Networks (PANW) vs. Synopsys (SNPS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Palo Alto Networks (PANW) and Synopsys (SNPS)
MetricPANWSNPS
P/E Ratio (TTM)266.84104.21
P/S Ratio (TTM)23.3710.02
P/B Ratio (MRQ)8.942.85
Free Cash Flow Yield (TTM)1.44%4.07%