Between AppLovin and Synopsys, Which Stock Looks Set to Break Out?
Synopsys fell -8.6% during the past Day. 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 quarterly revenue growth was 59.0%, vs. SNPS’s 41.9%.
- In addition, its Last 12 Months revenue growth came in at 66.4%, ahead of SNPS’s 39.5%.
- 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 | 109.0 | 42.6 | APP |
| Revenue Growth | |||
| Last Quarter | 41.9% | 59.0% | APP |
| Last 12 Months | 39.5% | 66.4% | APP |
| Last 3 Year Average | 23.5% | 37.0% | APP |
| Operating Margins | |||
| Last 12 Months | 9.7% | 77.1% | APP |
| Last 3 Year Average | 18.4% | 63.2% | APP |
| Momentum | |||
| Last 3 Year Return | 8.1% | 2394.3% | 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% | 12% | 103% | ||
| APP Return | 45% | -89% | 278% | 713% | 108% | -16% | 771% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% | ||
| 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 | -25% | -29% | -10% | -25% | -41% | -29% | -27% | ||
| APP Max Drawdown | – | -90% | -27% | -24% | -57% | -46% | -49% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/28/2026 (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 a portfolio approach.
Smart Investing Begins With Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains, and reduces single stock risk.
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? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.