Analyzing Synopsys (NASDAQ:SNPS) and Celerity Solutions (OTCMKTS:CLTY)

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

Valuation & Earnings

This table compares Synopsys and Celerity Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synopsys	$6.07 billion	11.37	$2.26 billion	$13.52	33.03
Celerity Solutions	N/A	N/A	N/A	N/A	N/A

Synopsys has higher revenue and earnings than Celerity Solutions.

Profitability

This table compares Synopsys and Celerity Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synopsys	36.12%	20.48%	13.51%
Celerity Solutions	N/A	N/A	N/A

Institutional & Insider Ownership

85.5% of Synopsys shares are owned by institutional investors. 0.6% of Synopsys shares are owned by insiders. Comparatively, 32.3% of Celerity Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Synopsys and Celerity Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synopsys	0	1	12	0	2.92
Celerity Solutions	0	0	0	0	0.00

Synopsys currently has a consensus target price of $618.31, suggesting a potential upside of 38.44%. Given Synopsys’ stronger consensus rating and higher probable upside, research analysts clearly believe Synopsys is more favorable than Celerity Solutions.

Summary

Synopsys beats Celerity Solutions on 8 of the 9 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 Celerity Solutions

Celerity Solutions, Inc. provides enterprise applications solutions. The company offers its applications in various areas, such as finance, human capital management, manufacturing, mergers and acquisitions, sales operations efficiency, supply chain, utilities, and Web retail. Celerity Solutions, Inc. was incorporated in 1982 and is based in Redwood City, California.