After SNPS’s 23% Climb in a Week, ORCL Looks Like the Stronger Long-Term Play

SNPS: Synopsys logo
SNPS
Synopsys

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 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%.

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 74.7 49.7 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 67.7% 417.5% SNPS

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).

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Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
SNPS Return 86% 42% -13% 61% -6% 2% 256%  
ORCL Return 24% 37% -5% 31% 60% 87% 534% <===
S&P 500 Return 16% 27% -19% 24% 23% 14% 106%  
Monthly Win Rates [3]
SNPS Win Rate 67% 67% 42% 75% 50% 62%   60%  
ORCL Win Rate 67% 58% 33% 58% 58% 62%   56%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 62%   63% <===
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 9/22/2025 (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