Synopsys (NASDAQ:SNPS) and Audioeye (NASDAQ:AEYE) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
88.1% of Synopsys shares are owned by institutional investors. Comparatively, 3.3% of Audioeye shares are owned by institutional investors. 1.8% of Synopsys shares are owned by insiders. Comparatively, 23.7% of Audioeye shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Synopsys and Audioeye, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Synopsys | 0 | 0 | 7 | 1 | 3.13 |
| Audioeye | 0 | 0 | 2 | 0 | 3.00 |
Synopsys presently has a consensus target price of $157.63, suggesting a potential upside of 12.69%. Audioeye has a consensus target price of $10.40, suggesting a potential upside of 102.73%. Given Audioeye’s higher possible upside, analysts clearly believe Audioeye is more favorable than Synopsys.
Risk and Volatility
Synopsys has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Audioeye has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
Profitability
This table compares Synopsys and Audioeye’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Synopsys | 15.84% | 13.54% | 8.48% |
| Audioeye | -86.70% | -191.90% | -89.17% |
Earnings & Valuation
This table compares Synopsys and Audioeye’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Synopsys | $3.36 billion | 6.26 | $532.37 million | $3.45 | 40.54 |
| Audioeye | $5.66 million | 8.05 | -$5.02 million | ($0.70) | -7.33 |
Synopsys has higher revenue and earnings than Audioeye. Audioeye is trading at a lower price-to-earnings ratio than Synopsys, indicating that it is currently the more affordable of the two stocks.
Summary
Synopsys beats Audioeye on 10 of the 14 factors compared between the two stocks.
Synopsys Company Profile
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.
Audioeye Company Profile
AudioEye, Inc. provides Web accessibility solutions to Internet, print, broadcast, and other media to people regardless of their network connection, device, location, or disabilities in the United States. The company develops patented Internet content publication and distribution software that enables conversion of media into accessible formats, as well as allows for real time distribution on various Internet connected devices. It provides AudioEye Ally Platform, which consists of Digital Accessibility Platform and Ally Managed Service that are offered as an Internet cloud software as a service to Website owners, publishers, developers, and operators. The company’s Digital Accessibility Platform, a self-service solution for clients who want to own the accessibility process from beginning to end and puts the power of accessibility issue tracking, auditing, and remediation in the hands of developers to enhance the usability and accessibility of their Web infrastructure. Its Ally Managed Service allows AudioEye accessibility engineers and AT usability testers to do heavy lifting; and AudioEye Ally Toolbar that provides easy-to-use and cloud-based assistive tools, which allow its clients to enhance the customer experience for those looking to customize the way in which they engage with the Web browser. The company also markets and sells managed services comprising product support, accessibility training from accessibility engineers and subject matter experts, manual assistive technology usability testing, video transcription and captioning, PDF accessibility solutions, audio description authoring, accessibility help desk, and others. It serves directly, as well as through strategic business and development referral partners to corporate enterprises; educational institutions; federal, state, and local governments and agencies; and not-for-profit organizations. The company was founded in 2005 and is headquartered in Tucson, Arizona.
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