Head to Head Analysis: ZIM (OTCMKTS:ZIMCF) versus Synopsys (NASDAQ:SNPS)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for ZIM and Synopsys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM	0	0	0	0	0.00
Synopsys	4	5	10	0	2.32

Synopsys has a consensus target price of $569.67, indicating a potential upside of 25.53%. Given Synopsys’ stronger consensus rating and higher probable upside, analysts clearly believe Synopsys is more favorable than ZIM.

Institutional and Insider Ownership

85.5% of Synopsys shares are held by institutional investors. 70.7% of ZIM shares are held by insiders. Comparatively, 0.6% of Synopsys shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZIM	N/A	N/A	N/A
Synopsys	31.04%	10.82%	6.16%

Earnings & Valuation

This table compares ZIM and Synopsys”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM	N/A	N/A	-$60,000.00	N/A	N/A
Synopsys	$6.13 billion	13.76	$2.26 billion	$12.74	35.62

Synopsys has higher revenue and earnings than ZIM.

Summary

Synopsys beats ZIM on 9 of the 10 factors compared between the two stocks.

About ZIM

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria. The company operates in two segments, Mobile and Enterprise Software. It develops and sells ZIM integrated development environment (IDE) software, an enterprise software for use in the design, development, and management of information databases and mission critical applications. The company’s ZIM IDE software provides an IDE for Microsoft Windows, UNIX, and Linux computer operating systems. Its products are used to develop database applications in various industries, including finance, insurance, marketing, human resource, information, and records management. The company also provides migration services and management products; and short message services. ZIM Corporation was founded in 1997 and is headquartered in Ottawa, Canada.

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.