Synopsys (NASDAQ:SNPS) versus Tenet Fintech Group (OTCMKTS:PKKFF) Critical Review

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

Earnings and Valuation

This table compares Synopsys and Tenet Fintech Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synopsys	$6.48 billion	13.23	$1.23 billion	$9.64	57.93
Tenet Fintech Group	$31.17 million	0.46	-$56.92 million	($0.50)	-0.14

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

Profitability

This table compares Synopsys and Tenet Fintech Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synopsys	24.06%	22.09%	14.05%
Tenet Fintech Group	-466.30%	-93.43%	-54.87%

Analyst Ratings

This is a breakdown of current ratings and price targets for Synopsys and Tenet Fintech Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synopsys	0	1	9	0	2.90
Tenet Fintech Group	0	0	0	0	0.00

Synopsys presently has a consensus target price of $653.80, suggesting a potential upside of 17.07%. Given Synopsys’ stronger consensus rating and higher possible upside, analysts plainly believe Synopsys is more favorable than Tenet Fintech Group.

Insider and Institutional Ownership

85.5% of Synopsys shares are held by institutional investors. Comparatively, 0.3% of Tenet Fintech Group shares are held by institutional investors. 0.7% of Synopsys shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Synopsys has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Tenet Fintech Group has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Summary

Synopsys beats Tenet Fintech Group on 12 of the 13 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 Tenet Fintech Group

Tenet Fintech Group Inc., through its subsidiaries, provides various analytics and AI-based services to small-and-medium businesses and financial institutions. It offers Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. The company was formerly known as Peak Fintech Group Inc. and changed its name to Tenet Fintech Group Inc. in November 2021. Tenet Fintech Group Inc. was incorporated in 2008 and is headquartered in Toronto, Canada.