CommVault Systems (NASDAQ:CVLT) vs. Synopsys (NASDAQ:SNPS) Head-To-Head Analysis

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

Institutional and Insider Ownership

85.5% of Synopsys shares are held by institutional investors. Comparatively, 93.5% of CommVault Systems shares are held by institutional investors. 0.6% of Synopsys shares are held by insiders. Comparatively, 1.0% of CommVault Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Synopsys	18.89%	7.89%	4.45%
CommVault Systems	7.32%	31.53%	7.16%

Valuation & Earnings

This table compares Synopsys and CommVault Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synopsys	$7.05 billion	14.24	$1.33 billion	$7.99	65.73
CommVault Systems	$1.10 billion	5.00	$76.11 million	$1.78	69.76

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synopsys	1	6	11	0	2.56
CommVault Systems	0	4	10	2	2.88

Synopsys presently has a consensus target price of $562.13, indicating a potential upside of 7.04%. CommVault Systems has a consensus target price of $188.17, indicating a potential upside of 51.54%. Given CommVault Systems’ stronger consensus rating and higher possible upside, analysts clearly believe CommVault Systems is more favorable than Synopsys.

Risk and Volatility

Synopsys has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Summary

CommVault Systems beats Synopsys on 8 of the 15 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 CommVault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.