Big Decline for SNPS, but Do ORCL’s Margins and Growth Give It the Edge?
Oracle (ORCL) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Synopsys (SNPS), suggesting you may be better off investing in ORCL
- ORCL’s Last 12 Months revenue growth was 9.7%, vs. SNPS’s 8.0%.
- In addition, its Last 3-Year Average revenue growth came in at 10.2%, ahead of SNPS’s 9.7%.
- ORCL leads on profitability over both periods – LTM margin of 31.6% and 3-year average of 30.3%.
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SNPS provides electronic design automation software and IP solutions for integrated circuits and various communication standards like USB, PCI Express, Ethernet, HDMI, and Bluetooth. ORCL provides cloud software services, industry solutions, application licenses, license support, enterprise database, software development language, and middleware products.
Valuation & Performance Overview
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| SNPS | ORCL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 68.0 | 43.3 | ORCL |
| Revenue Growth | |||
| Last Quarter | 14.0% | 12.2% | SNPS |
| Last 12 Months | 8.0% | 9.7% | ORCL |
| Last 3 Year Average | 9.7% | 10.2% | ORCL |
| Operating Margins | |||
| Last 12 Months | 17.2% | 31.6% | ORCL |
| Last 3 Year Average | 21.6% | 30.3% | ORCL |
| Momentum | |||
| Last 3 Year Return | 48.0% | 372.4% | SNPS |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: SNPS Revenue Comparison | ORCL Revenue Comparison
See more margin details: SNPS Operating Income Comparison | ORCL Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell ORCL Stock to see if Oracle’s edge holds up under the hood or if Synopsys still has cards to play (see Buy or Sell SNPS Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SNPS Return | 86% | 42% | -13% | 61% | -6% | -3% | 250% | ||
| ORCL Return | 24% | 37% | -5% | 31% | 60% | 75% | 483% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| SNPS Win Rate | 67% | 67% | 42% | 75% | 50% | 62% | 60% | ||
| ORCL Win Rate | 67% | 58% | 33% | 58% | 58% | 62% | 56% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| Max Drawdowns [4] | |||||||||
| SNPS Max Drawdown | -22% | -16% | -29% | -1% | -10% | -22% | -17% | ||
| ORCL Max Drawdown | -25% | -6% | -29% | 0% | -3% | -26% | -15% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/3/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year