Synopsys (SNPS) and EnerNOC (ENOC) Critical Survey

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

Valuation and Earnings

This table compares Synopsys and EnerNOC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synopsys $2.72 billion 4.86 $136.56 million $0.85 104.79
EnerNOC N/A N/A N/A ($1.50) -5.10

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

Risk & Volatility

Synopsys has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, EnerNOC has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Insider & Institutional Ownership

89.8% of Synopsys shares are owned by institutional investors. Comparatively, 49.7% of EnerNOC shares are owned by institutional investors. 1.8% of Synopsys shares are owned by company insiders. Comparatively, 13.4% of EnerNOC shares are owned by company 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 Synopsys and EnerNOC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synopsys 5.01% 5.78% 3.55%
EnerNOC -66.80% -160.15% -42.76%

Analyst Recommendations

This is a summary of recent ratings and price targets for Synopsys and EnerNOC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synopsys 1 0 7 0 2.75
EnerNOC 0 4 0 0 2.00

Synopsys currently has a consensus price target of $97.63, indicating a potential upside of 9.60%. EnerNOC has a consensus price target of $8.56, indicating a potential upside of 11.85%. Given EnerNOC’s higher possible upside, analysts clearly believe EnerNOC is more favorable than Synopsys.

Summary

Synopsys beats EnerNOC on 10 of the 12 factors compared between the two stocks.

Synopsys Company Profile

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.

EnerNOC Company Profile

EnerNOC, Inc. is a provider of energy intelligence software (EIS) and demand response solutions. The Company’s EIS provides enterprise solutions, utility solutions and energy procurement solutions. The Company’s EIS offers enterprise customers with a Software-as-a-Service (SaaS) solutions with various areas of functionalities, including energy cost visualization, budgets, forecasts and accruals; project tracking, and demand management. Its EIS provides its utility customers with a SaaS-based customer engagement platform, which collects and processes data and enables its utility customers to provide personalized communication and recommendations to their customers. Its EIS includes an energy procurement platform that helps its enterprise and utility customers. Its procurement platform offers its enterprise and utility customers with features, such as energy contracts management. Its technology includes over two components: its EIS platform and Network Operations Center (NOC).

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