SNPS vs. ZM: Synopsys vs. Zoom Communications Stock Comparison
How do Synopsys (SNPS) and Zoom Communications (ZM) 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
Synopsys (SNPS) and Zoom Communications (ZM) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | SNPS | ZM |
|---|---|---|
| Name | Synopsys Inc. | Zoom Communications, Inc. Class A Common Stock |
| 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 | Application Software | Application Software |
| Market Capitalization | 86.32 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | February 26, 1992 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | SNPS | ZM |
|---|---|---|
| Total Return (1Y) | 18.77% | 12.58% |
| Total Return (3Y, Annualized) | -2.57% | 14.89% |
| Total Return (5Y, Annualized) | 6.06% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | SNPS | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 45.03% | 45.03% |
| Beta (5Y) | 1.17 | 0.99 |
| Max Drawdown (5Y) | -43.02% | -79.08% |
| Avg. Volume (3M) | 2.11M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | SNPS | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | 0.32 | 0.18 |
| Sortino Ratio (1Y) | 0.49 | 0.28 |
Profitability
ROE (TTM)
Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while Synopsys (SNPS) at 3.66% is closer to the peer norm — stronger capital efficiency for ZM.
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%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% converts revenue to bottom-line profit above its industry’s benchmark range, while Synopsys (SNPS) at 11.43% keeps roughly the typical share for its industry.
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%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Zoom Communications (ZM) at 24.61% operates in the top operating margin quartile, ahead of Synopsys (SNPS) at 14.52%, which runs around its industry’s norm.
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%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | SNPS | ZM |
|---|---|---|
| ROE (TTM) | 3.66% | 32.14% |
| ROA (TTM) | 1.35% | 6.11% |
| Net Margin (TTM) | 11.43% | 65.19% |
| Operating Margin (TTM) | 14.52% | 24.61% |
| Gross Margin (TTM) | 82.92% | 77.66% |
Growth
Revenue Growth
Synopsys (SNPS) at 15.12% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Zoom Communications (ZM) at 92.52% 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 | SNPS | ZM |
|---|---|---|
| Revenue Growth (YoY) | 15.12% | 4.36% |
| Revenue Growth (3Y CAGR) | 15.19% | 3.49% |
| EPS Growth (YoY) | -44.59% | 92.52% |
| EPS Growth (3Y CAGR) | 8.53% | 162.93% |
Financial Strength
Current Ratio (MRQ)
Synopsys (SNPS) at 1.34 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
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
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Synopsys (SNPS) at 0.35 runs a more typical debt-to-equity mix.
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
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | SNPS | ZM |
|---|---|---|
| Current Ratio (MRQ) | 1.34 | 3.83 |
| Debt / Equity (MRQ) | 0.35 | 0.01 |
| Net Debt / EBITDA | 3.49 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Synopsys (SNPS) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Synopsys (SNPS) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | SNPS | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Synopsys (SNPS) at 79.59 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.
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
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
Zoom Communications (ZM) at 5.25 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.
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
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
On P/B ratio, both Synopsys (SNPS) at 2.77 and Zoom Communications (ZM) at 2.32 are valued close to their industries’ norm against book — neither stands out from peers.
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
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | SNPS | ZM |
|---|---|---|
| P/E Ratio (TTM) | 79.59 | 8.34 |
| P/S Ratio (TTM) | 9.17 | 5.25 |
| P/B Ratio (MRQ) | 2.77 | 2.32 |
| Free Cash Flow Yield (TTM) | 3.97% | 7.53% |