Financial Analysis: Synopsys (NASDAQ:SNPS) & Onestream (NASDAQ:OS)

Onestream (NASDAQ:OS) and Synopsys (NASDAQ:SNPS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Institutional & Insider Ownership

85.5% of Synopsys shares are owned by institutional investors. 0.7% of Synopsys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Onestream and Synopsys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onestream	0	2	14	1	2.94
Synopsys	0	1	10	0	2.91

Onestream presently has a consensus price target of $35.50, suggesting a potential upside of 12.81%. Synopsys has a consensus price target of $644.36, suggesting a potential upside of 14.03%. Given Synopsys’ higher probable upside, analysts plainly believe Synopsys is more favorable than Onestream.

Valuation & Earnings

This table compares Onestream and Synopsys”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onestream	N/A	N/A	N/A	N/A	N/A
Synopsys	$5.84 billion	14.86	$1.23 billion	$9.64	58.62

Synopsys has higher revenue and earnings than Onestream.

Profitability

This table compares Onestream and Synopsys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onestream	N/A	N/A	N/A
Synopsys	24.06%	22.09%	14.05%

Summary

Synopsys beats Onestream on 7 of the 10 factors compared between the two stocks.

About Onestream

OneStream, Inc. develops corporate performance management software solutions primarily to perform financial statement consolidation and planning and budgeting. Its solutions include financial close and consolidation that streamlines financial processes with capabilities designed to automate tasks and manage the complexity and standards of financial reporting and consolidation; financial and operational planning and analysis that enables financial and operational planning, budgeting, forecasting, and results analysis for individual business functions and the synchronization of plans across the entire organization; and financial and operational reporting that provides end-to-end visibility of analytics and key metrics to various stakeholders, including executives, Finance professionals, line-of-business leaders, and other business partners. Its customers include global enterprises, mid-market organizations, and government entities in the United States and internationally. The company was founded in 2012 and is based in Birmingham, Michigan.

About Synopsys

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as optical products, and mechatronic simulations. Further, it provides security and quality testing products, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. Additionally, the company provides intelligent orchestration solution, software risk manager, and black duck software composition analysis tools. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.