Analyzing Synopsys (SNPS) & MINDBODY (MB)

MINDBODY (NASDAQ: MB) and Synopsys (NASDAQ:SNPS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Volatility and Risk

MINDBODY has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

90.2% of MINDBODY shares are owned by institutional investors. Comparatively, 89.9% of Synopsys shares are owned by institutional investors. 8.2% of MINDBODY shares are owned by insiders. Comparatively, 1.8% of Synopsys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares MINDBODY and Synopsys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MINDBODY -9.26% -8.39% -6.68%
Synopsys 5.01% 5.78% 3.55%

Analyst Recommendations

This is a summary of recent recommendations for MINDBODY and Synopsys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MINDBODY 0 2 8 0 2.80
Synopsys 0 1 7 0 2.88

MINDBODY currently has a consensus price target of $32.15, indicating a potential upside of 6.63%. Synopsys has a consensus price target of $99.14, indicating a potential upside of 9.76%. Given Synopsys’ stronger consensus rating and higher possible upside, analysts plainly believe Synopsys is more favorable than MINDBODY.

Earnings & Valuation

This table compares MINDBODY and Synopsys’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MINDBODY $139.02 million 10.13 -$22.97 million ($0.38) -79.34
Synopsys $2.72 billion 4.99 $136.56 million $0.85 106.27

Synopsys has higher revenue and earnings than MINDBODY. MINDBODY is trading at a lower price-to-earnings ratio than Synopsys, indicating that it is currently the more affordable of the two stocks.

Summary

Synopsys beats MINDBODY on 9 of the 13 factors compared between the two stocks.

About MINDBODY

MINDBODY, Inc. is a provider of cloud-based business management software for the wellness services industry and operates as a consumer marketplace with local business subscribers on its platform. The Company’s subscribers provide a range of wellness services to active consumers. Its integrated software and payments platform helps business owners in the wellness services industry run, market and build their businesses. It also helps consumers discover, evaluate, engage and transact with these businesses through the Web and mobile devices. The platform addresses various aspects of operating a wellness business, including client scheduling and online booking; retail point-of-sale; analytics and reporting; user experience; mobility; social integration; dynamic cloud-based architecture; open platform for third-party application development; integration with other cloud-based partners, and security and compliance.

About Synopsys

Synopsys, Inc. provides software, intellectual property (IP) and services. The Company supplies the electronic design automation (EDA) software that engineers use to design and test integrated circuits, also known as chips. It also offers IP products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. It provides software and hardware used to develop the electronic systems that incorporate chips and the software that runs on them. It provides technical services to support its solutions and help its customers develop chips and electronic systems. It is also a provider of software tools that developers use to develop software code in a range of industries, including electronics, financial services, energy, and industrials. It offers products and services in four categories: core EDA; IP, Systems and Software Integrity; Manufacturing Solutions, and Professional Services and Other.

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