Can Oracle Outrun Synopsys in the Next Rally?
Synopsys fell -15% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Oracle gives you more. 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%.
These differences become even clearer when you look at the financials side by side. The table highlights how SNPS’s fundamentals stack up against those of ORCL on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| SNPS | ORCL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 55.9 | 31.9 | 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 | 18.3% | 174.3% | 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
See detailed fundamentals on Buy or Sell ORCL Stock and Buy or Sell SNPS Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SNPS Return | 86% | 42% | -13% | 61% | -6% | -21% | 177% | ||
| ORCL Return | 24% | 37% | -5% | 31% | 60% | 28% | 334% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 11% | 102% | ||
| 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 11/20/2025 (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
Still not sure about SNPS or ORCL? Consider portfolio approach.
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Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
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