Synopsys (NASDAQ:SNPS – Get Free Report) and Elcom International (OTCMKTS:ELCO – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Institutional & Insider Ownership
85.5% of Synopsys shares are held by institutional investors. 0.6% of Synopsys shares are held by insiders. Comparatively, 13.6% of Elcom International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Synopsys and Elcom International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Synopsys | 1 | 7 | 9 | 0 | 2.47 |
| Elcom International | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Synopsys and Elcom International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Synopsys | 8.91% | 5.83% | 3.58% |
| Elcom International | N/A | N/A | N/A |
Earnings and Valuation
This table compares Synopsys and Elcom International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Synopsys | $7.05 billion | 12.91 | $1.33 billion | $6.44 | 73.85 |
| Elcom International | N/A | N/A | N/A | N/A | N/A |
Synopsys has higher revenue and earnings than Elcom International.
Volatility and Risk
Synopsys has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Elcom International has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500.
Summary
Synopsys beats Elcom International on 9 of the 10 factors compared between the two stocks.
About Synopsys
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as optical products, and mechatronic simulations. Further, it provides security and quality testing products, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. Additionally, the company provides intelligent orchestration solution, software risk manager, and black duck software composition analysis tools. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
About Elcom International
Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.
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