Big Move 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 quarterly revenue growth was 11.3%, vs. SNPS’s 10.3%.
- In addition, its Last 12 Months growth came in at 8.4%, ahead of SNPS’s 7.5%.
- ORCL leads on profitability over both periods – LTM margin of 31.5% and 3-year average of 29.8%.
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Valuation & Performance Overview
| SNPS | ORCL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 70.7 | 38.5 | ORCL |
| Revenue Growth | |||
| Last Quarter | 10.3% | 11.3% | ORCL |
| Last 12 Months | 7.5% | 8.4% | ORCL |
| Last 3 Year Average | 9.8% | 10.7% | ORCL |
| Operating Margins | |||
| Last 12 Months | 20.9% | 31.5% | ORCL |
| Last 3 Year Average | 22.4% | 29.8% | ORCL |
| Momentum | |||
| Last 3 Year Return | 63.4% | 234.8% | 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
Historical Market Performance
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| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SNPS Return | 86% | 42% | -13% | 61% | -6% | 24% | 332% | ||
| ORCL Return | 24% | 37% | -5% | 31% | 60% | 48% | 404% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 9% | 98% | ||
| Monthly Win Rates [3] | |||||||||
| SNPS Win Rate | 67% | 67% | 42% | 75% | 50% | 67% | 61% | ||
| ORCL Win Rate | 67% | 58% | 33% | 58% | 58% | 67% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | <=== | |
| 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 till date (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