Reviewing Roper Technologies (NASDAQ:ROP) & Synopsys (NASDAQ:SNPS)

Synopsys (NASDAQ:SNPS) and Roper Technologies (NASDAQ:ROP) are both large-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Synopsys and Roper Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synopsys	1	6	11	0	2.56
Roper Technologies	3	9	7	0	2.21

Synopsys presently has a consensus price target of $563.59, suggesting a potential upside of 37.55%. Roper Technologies has a consensus price target of $466.94, suggesting a potential upside of 12.87%. Given Synopsys’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Synopsys is more favorable than Roper Technologies.

Volatility and Risk

Synopsys has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Roper Technologies has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Institutional and Insider Ownership

85.5% of Synopsys shares are held by institutional investors. Comparatively, 93.3% of Roper Technologies shares are held by institutional investors. 0.6% of Synopsys shares are held by insiders. Comparatively, 0.8% of Roper Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synopsys	8.91%	5.83%	3.58%
Roper Technologies	30.24%	11.36%	6.33%

Earnings & Valuation

This table compares Synopsys and Roper Technologies”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	11.12	$1.33 billion	$4.32	94.84
Roper Technologies	$7.90 billion	5.18	$1.54 billion	$24.14	17.14

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

Summary

Roper Technologies beats Synopsys on 8 of the 14 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 Roper Technologies

Roper Technologies, Inc. designs and develops software, and technology enabled products and solutions. It operates through three segments: Application Software, Network Software, and Technology Enabled Products. The Application Software segment offers management, campus solutions, diagnostic and laboratory information management, enterprise software and information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations. The Network Software segment provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; data analytics and information; and pharmacy software solutions. The Technology Enabled Products segment offers ultrasound accessories; dispensers and metering pumps; wireless sensor network and solutions automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; RFID card readers; and medical devices. It distributes and sells its products through direct sales, manufacturers’ representatives, resellers, and distributors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. The company was incorporated in 1981 and is based in Sarasota, Florida.