Is AppLovin a Better Buy Than Synopsys?
Synopsys surged 23% 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 AppLovin gives you more. AppLovin (APP) 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 APP
- APP’s Last 12 Months revenue growth was 66.4%, vs. SNPS’s 31.9%.
- In addition, its Last 3-Year Average revenue growth came in at 37.0%, ahead of SNPS’s 19.8%.
- APP leads on profitability over both periods – LTM margin of 77.1% and 3-year average of 63.2%.
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 APP on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| SNPS | APP | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 98.8 | 34.8 | APP |
| Revenue Growth | |||
| Last Quarter | 65.5% | 59.0% | SNPS |
| Last 12 Months | 31.9% | 66.4% | APP |
| Last 3 Year Average | 19.8% | 37.0% | APP |
| Operating Margins | |||
| Last 12 Months | 12.3% | 77.1% | APP |
| Last 3 Year Average | 19.2% | 63.2% | APP |
| Momentum | |||
| Last 3 Year Return | 39.1% | 2181.2% | APP |
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.
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See detailed fundamentals on Buy or Sell APP Stock and Buy or Sell SNPS Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SNPS Return | 42% | -13% | 61% | -6% | -3% | 10% | 99% | ||
| APP Return | 45% | -89% | 278% | 713% | 108% | -29% | 634% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 97% | ||
| Monthly Win Rates [3] | |||||||||
| SNPS Win Rate | 67% | 42% | 75% | 50% | 50% | 40% | 54% | ||
| APP Win Rate | 67% | 8% | 83% | 83% | 58% | 40% | 57% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| SNPS Max Drawdown | -16% | -29% | -1% | -10% | -22% | -19% | -16% | ||
| APP Max Drawdown | -24% | -90% | -8% | -4% | -32% | -46% | -34% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/12/2026 (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
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read APP Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about SNPS or APP? Consider portfolio approach.
The Right Way To Invest Is Through Portfolios
Single stocks swing wildly, but staying invested matters. A well-built portfolio helps you stay invested, captures upside, and softens the blows from individual stocks.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.