Synopsys (NASDAQ:SNPS) and Ceridian HCM (NASDAQ:CDAY) Head to Head Survey

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

Profitability

This table compares Synopsys and Ceridian HCM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synopsys 18.94% 16.56% 10.08%
Ceridian HCM 4.19% 2.34% 0.61%

Earnings and Valuation

This table compares Synopsys and Ceridian HCM’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synopsys $3.12 billion 6.36 $432.51 million $2.82 46.85
Ceridian HCM $746.40 million 8.18 -$63.40 million ($0.05) -853.40

Synopsys has higher revenue and earnings than Ceridian HCM. Ceridian HCM 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 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Ceridian HCM has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Institutional & Insider Ownership

89.4% of Synopsys shares are held by institutional investors. Comparatively, 81.3% of Ceridian HCM shares are held by institutional investors. 1.8% of Synopsys shares are held by insiders. Comparatively, 26.9% of Ceridian HCM shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Synopsys and Ceridian HCM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synopsys 0 1 8 1 3.00
Ceridian HCM 0 5 7 0 2.58

Synopsys currently has a consensus target price of $146.00, suggesting a potential upside of 10.51%. Ceridian HCM has a consensus target price of $57.09, suggesting a potential upside of 33.80%. Given Ceridian HCM’s higher possible upside, analysts plainly believe Ceridian HCM is more favorable than Synopsys.

Summary

Synopsys beats Ceridian HCM on 11 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 (ICs). It offers Fusion Design Platform, a digital design implementation solution; Verification Continuum Platform, which provides 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. The company also offers intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip 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, it provides logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, the company offers Platform Architect tools for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, it provides testing tools, services, and programs, which include security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate defects in the software development lifecycle; manufacturing solutions for semiconductor manufacturers to develop fabrication processes; and professional and other services. Synopsys, Inc. has collaboration with Palma Ceia SemiDesign, Inc. to provide ready-to-use NB-IoT solution. The company was founded in 1986 and is headquartered in Mountain View, California.

About Ceridian HCM

Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States and internationally. The company offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud platform, which offers scalable and straightforward payroll and HR solutions. It also provides Bureau solutions for payroll and payroll-related services. Ceridian HCM Holding Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

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