Reviewing Synopsys (NASDAQ:SNPS) and Triple P (OTCMKTS:TPPPF)
by Kim Johansen · The Markets DailyTriple P (OTCMKTS:TPPPF – Get Free Report) and Synopsys (NASDAQ:SNPS – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Earnings & Valuation
This table compares Triple P and Synopsys”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Triple P | N/A | N/A | N/A | N/A | N/A |
| Synopsys | $7.05 billion | 12.90 | $1.33 billion | $7.99 | 59.51 |
Synopsys has higher revenue and earnings than Triple P.
Analyst Ratings
This is a breakdown of recent recommendations for Triple P and Synopsys, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Triple P | 0 | 0 | 0 | 0 | 0.00 |
| Synopsys | 1 | 6 | 11 | 0 | 2.56 |
Synopsys has a consensus target price of $562.13, indicating a potential upside of 18.22%. Given Synopsys’ stronger consensus rating and higher probable upside, analysts plainly believe Synopsys is more favorable than Triple P.
Risk and Volatility
Triple P has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Profitability
This table compares Triple P and Synopsys’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Triple P | N/A | N/A | N/A |
| Synopsys | 18.89% | 7.89% | 4.45% |
Insider & Institutional Ownership
85.5% of Synopsys shares are owned by institutional investors. 39.0% of Triple P shares are owned by insiders. Comparatively, 0.6% of Synopsys shares are owned 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.
Summary
Synopsys beats Triple P on 9 of the 10 factors compared between the two stocks.
About Triple P
Triple P. N.V. provides information and communication technology (ICT) infrastructure solutions. Its services include ICT security, cloud, managed services, managed IP telephony, professional services, business continuity, unified communications, and cloud migration. The company serves care, education, government, and commercial services sectors. Triple P. N.V. was founded in 1989 and is headquartered in Nieuwegein, the Netherlands.
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.