Oracle or Synopsys: Which Stock Has More Upside?
Even as Synopsys fell -6.6% during the past Day, its peer Oracle may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Oracle (ORCL) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Synopsys (SNPS) stock, 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%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Strategic asset allocation and diversification help you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.
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
| SNPS | ORCL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 60.4 | 37.6 | 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 | 50.5% | 238.9% | ORCL |
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% | -14% | 226% | ||
| ORCL Return | 24% | 37% | -5% | 31% | 60% | 50% | 441% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 112% | ||
| Monthly Win Rates [3] | |||||||||
| SNPS Win Rate | 67% | 67% | 42% | 75% | 50% | 50% | 58% | ||
| ORCL Win Rate | 67% | 58% | 33% | 58% | 58% | 60% | 56% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| 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 11/4/2025 (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
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.