Head-To-Head Survey: N-able (NYSE:NABL) & Synopsys (NASDAQ:SNPS)

N-able (NYSE:NABL) and Synopsys (NASDAQ:SNPS) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Volatility and Risk

N-able has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for N-able and Synopsys, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
N-able	0	2	2	0	2.50
Synopsys	0	0	10	0	3.00

N-able currently has a consensus price target of $15.50, indicating a potential upside of 12.12%. Synopsys has a consensus price target of $627.18, indicating a potential upside of 14.55%. Given Synopsys’ stronger consensus rating and higher probable upside, analysts clearly believe Synopsys is more favorable than N-able.

Institutional and Insider Ownership

96.4% of N-able shares are owned by institutional investors. Comparatively, 85.5% of Synopsys shares are owned by institutional investors. 1.4% of N-able shares are owned by company insiders. Comparatively, 0.7% of Synopsys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares N-able and Synopsys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
N-able	6.27%	4.38%	2.66%
Synopsys	23.05%	22.66%	14.06%

Earnings & Valuation

This table compares N-able and Synopsys’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
N-able	$421.88 million	6.05	$23.41 million	$0.14	98.75
Synopsys	$5.84 billion	14.36	$1.23 billion	$9.20	59.51

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

Summary

Synopsys beats N-able on 11 of the 14 factors compared between the two stocks.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

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.