In the fast-evolving technology sector, Synopsys, Inc. (SNPS) and CoreWeave, Inc. (CRWV) stand out as key players in software infrastructure, each driving innovation in distinct yet overlapping markets. Synopsys excels in electronic design automation, while CoreWeave focuses on cloud platforms for AI and compute workloads. This comparison will help investors understand which company offers the most compelling opportunity in this dynamic landscape. Let’s explore which stock deserves a place in your portfolio.
Table of contents
Companies Overview
I will begin the comparison between Synopsys and CoreWeave by providing an overview of these two companies and their main differences.
Synopsys Overview
Synopsys, Inc. specializes in electronic design automation software for integrated circuits. Its offerings include digital design implementation, verification, FPGA design, and intellectual property solutions across multiple protocols and applications. Founded in 1986 and headquartered in Mountain View, California, Synopsys serves diverse sectors such as electronics, automotive, finance, and medicine, employing around 20,000 people. Its market capitalization stands near 98.8B USD.
CoreWeave Overview
CoreWeave, Inc. operates a cloud infrastructure platform focused on scaling and accelerating GenAI compute workloads. The company provides GPU/CPU compute, storage, networking, managed services, and virtual or bare metal servers. Established in 2017 and based in Livingston, New Jersey, CoreWeave targets AI model training, VFX rendering, and mission control tasks. It employs approximately 881 staff and has a market capitalization of about 50.4B USD.
Key similarities and differences
Both Synopsys and CoreWeave operate in the software infrastructure industry within the technology sector in the US. Synopsys emphasizes software tools and IP for chip design and verification, while CoreWeave focuses on cloud compute services for AI workloads. Synopsys is a well-established company with a broader product portfolio and larger workforce compared to the younger, specialized cloud platform provider CoreWeave. Their business models differ primarily in product types and target market applications.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Synopsys, Inc. and CoreWeave, Inc. Class A Common Stock for their most recent fiscal years.
| Metric | Synopsys, Inc. (SNPS) | CoreWeave, Inc. Class A (CRWV) |
|---|---|---|
| Market Cap | 98.8B | 50.4B |
| Revenue | 7.05B | 1.92B |
| EBITDA | 2.50B | 480M |
| EBIT | 1.84B | -383M |
| Net Income | 1.33B | -863M |
| EPS | 8.13 | -2.33 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Synopsys, Inc.
From 2021 to 2025, Synopsys experienced steady revenue growth reaching $7.05B in 2025, with net income rising overall to $1.33B despite a dip in the latest year. Gross and EBIT margins remained favorable at 76.98% and 26.08%, respectively. The most recent year showed slowed net margin and EPS growth, signaling some margin pressure despite revenue gains.
CoreWeave, Inc. Class A Common Stock
CoreWeave’s revenue surged dramatically from $15.8M in 2022 to $1.92B in 2024, though net income remained negative at -$863M in 2024. While gross margin was favorable at 74.24%, EBIT and net margins were deeply negative, reflecting high costs and interest expenses. The latest year saw improved EBIT and net margin growth but continuing net losses.
Which one has the stronger fundamentals?
Synopsys demonstrates stronger fundamentals with consistent revenue and net income growth, robust margins, and a predominantly favorable income statement evaluation. CoreWeave shows rapid top-line expansion but suffers from significant net losses and unfavorable EBIT and net margins, indicating higher financial risk despite improving trends.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Synopsys, Inc. (SNPS) and CoreWeave, Inc. Class A Common Stock (CRWV) based on their most recent fiscal year data.
| Ratios | Synopsys, Inc. (2025) | CoreWeave, Inc. (2024) |
|---|---|---|
| ROE | 4.72% | 208.77% |
| ROIC | 1.97% | 2.08% |
| P/E | 54.36 | -18.73 |
| P/B | 2.57 | -39.11 |
| Current Ratio | 1.62 | 0.39 |
| Quick Ratio | 1.52 | 0.39 |
| D/E (Debt-to-Equity) | 0.50 | -25.68 |
| Debt-to-Assets | 29.64% | 59.56% |
| Interest Coverage | 2.05 | 0.90 |
| Asset Turnover | 0.15 | 0.11 |
| Fixed Asset Turnover | 5.04 | 0.13 |
| Payout Ratio | 0 | -6.69% |
| Dividend Yield | 0 | 0.36% |
Interpretation of the Ratios
Synopsys, Inc.
Synopsys shows a balanced ratio profile with 35.71% favorable and unfavorable indicators each, and 28.57% neutral. Strengths include a solid net margin of 18.96%, good liquidity ratios above 1.5, and moderate debt levels. However, returns on equity and invested capital are weak, and valuation multiples are high. The company does not pay dividends, likely prioritizing reinvestment and growth.
CoreWeave, Inc. Class A Common Stock
CoreWeave’s ratios lean mostly unfavorable at 71.43%, with only 28.57% favorable. It suffers from a negative net margin of -45.08%, poor liquidity with current and quick ratios below 0.4, and high weighted average cost of capital at 84.93%. Despite a strong return on equity, its overall financial health is weak. The firm does not pay dividends, reflecting ongoing investment in growth and infrastructure.
Which one has the best ratios?
Between the two, Synopsys presents a more balanced and stable financial ratio profile with stronger profitability and liquidity metrics. CoreWeave faces significant challenges with liquidity, profitability, and high financial costs. Thus, Synopsys currently holds the more favorable financial ratios, while CoreWeave shows various risk factors and weaker financial health.
Strategic Positioning
This section compares the strategic positioning of Synopsys and CoreWeave, focusing on market position, key segments, and exposure to technological disruption:
Synopsys, Inc.
- Large market cap (~99B), stable NASDAQ presence, faces moderate competitive pressure in software infrastructure.
- Focuses on electronic design automation software and IP solutions, with strong revenue from licenses and technology services.
- Exposure to evolving semiconductor design and security IP technologies, adapting through comprehensive product platforms.
CoreWeave, Inc. Class A Common Stock
- Mid-sized market cap (~50B), high beta indicating volatility, competes in cloud infrastructure with aggressive growth.
- Provides cloud platform services for GenAI compute workloads including GPU/CPU compute and managed services.
- Positioned in high-growth cloud and AI infrastructure, exposed to rapid technological advancements in AI and cloud computing.
Synopsys vs CoreWeave Positioning
Synopsys has a diversified product portfolio centered on semiconductor design software and IP, generating consistent revenues. CoreWeave concentrates on cloud infrastructure for AI workloads, with more volatile market dynamics and a narrower focus. Synopsys’s scale contrasts with CoreWeave’s emerging growth positioning.
Which has the best competitive advantage?
Both companies are currently shedding value based on MOAT evaluations. Synopsys shows a very unfavorable trend with declining profitability, while CoreWeave’s profitability is stable but unfavorable. Neither currently demonstrates a strong sustainable competitive advantage.
Stock Comparison
The stock price movements of Synopsys, Inc. and CoreWeave, Inc. Class A Common Stock over the past year reflect contrasting trends, with Synopsys experiencing an overall decline and recent recovery, while CoreWeave shows significant long-term gains but recent pullback.
Trend Analysis
Synopsys, Inc. (SNPS) displayed a bearish trend over the past 12 months with a price decline of -10.31% and accelerating downward momentum. The stock ranged between 388.13 and 621.3, showing high volatility (std deviation 58.85).
CoreWeave, Inc. Class A (CRWV) posted a strong bullish trend over the same period, gaining 153.08% with decelerating upward momentum. Price fluctuated from 39.09 to 183.58, with moderate volatility (std deviation 35.67).
Comparing both, CoreWeave outperformed Synopsys significantly in market performance over the past year, despite its recent short-term decline of -24.29% versus Synopsys’s recent 13.77% gain.
Target Prices
The current analyst consensus presents optimistic target prices for both Synopsys, Inc. and CoreWeave, Inc. Class A Common Stock.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Synopsys, Inc. | 600 | 425 | 530 |
| CoreWeave, Inc. Class A Common Stock | 175 | 68 | 115.79 |
Analysts expect Synopsys shares to appreciate moderately above the current price of $516.31, while CoreWeave shows a wider range but a consensus price notably above its current $101.23 trading level.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Synopsys, Inc. and CoreWeave, Inc. Class A Common Stock:
Rating Comparison
Synopsys, Inc. Rating
- Rating: B-, categorized as Very Favorable
- Discounted Cash Flow Score: 3, indicating Moderate valuation
- ROE Score: 3, reflecting Moderate efficiency in equity use
- ROA Score: 3, showing Moderate asset utilization
- Debt To Equity Score: 2, Moderate financial risk
- Overall Score: 3, Moderate financial standing
CoreWeave, Inc. Class A Common Stock Rating
- Rating: D+, categorized as Very Favorable
- Discounted Cash Flow Score: 1, indicating Very Unfavorable valuation
- ROE Score: 1, reflecting Very Unfavorable efficiency
- ROA Score: 1, showing Very Unfavorable asset utilization
- Debt To Equity Score: 1, Very Unfavorable financial risk
- Overall Score: 1, Very Unfavorable financial standing
Which one is the best rated?
Based strictly on the provided data, Synopsys, Inc. holds a stronger position with a B- rating and moderate scores across key financial metrics. CoreWeave, Inc. displays consistently very unfavorable scores and a lower D+ rating.
Scores Comparison
Here is a comparison of the financial scores for Synopsys and CoreWeave:
Synopsys Scores
- Altman Z-Score: 3.54, indicating a safe zone status with low bankruptcy risk.
- Piotroski Score: 4, classified as average financial strength.
CoreWeave Scores
- Altman Z-Score: 0.80, indicating distress zone and high bankruptcy risk.
- Piotroski Score: 3, classified as very weak financial strength.
Which company has the best scores?
Based on the provided data, Synopsys has a higher Altman Z-Score placing it in the safe zone, unlike CoreWeave in distress. Synopsys also has a slightly better Piotroski Score, though both companies show relatively weak financial strength.
Grades Comparison
Here is a detailed comparison of the latest grades assigned to Synopsys, Inc. and CoreWeave, Inc. Class A Common Stock:
Synopsys, Inc. Grades
The table below summarizes recent grades from reputable grading companies for Synopsys, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Downgrade | Neutral | 2026-01-13 |
| Morgan Stanley | Maintain | Overweight | 2025-12-12 |
| Rosenblatt | Maintain | Buy | 2025-12-11 |
| Keybanc | Maintain | Overweight | 2025-12-11 |
| Piper Sandler | Maintain | Overweight | 2025-12-11 |
| Needham | Maintain | Buy | 2025-12-11 |
| B of A Securities | Upgrade | Buy | 2025-12-11 |
| JP Morgan | Maintain | Overweight | 2025-12-11 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-11 |
| Rosenblatt | Upgrade | Buy | 2025-12-09 |
The overall trend for Synopsys shows a predominantly positive consensus, with multiple Buy and Overweight ratings, although Piper Sandler recently downgraded to Neutral.
CoreWeave, Inc. Class A Common Stock Grades
The table below details recent grades from recognized grading firms for CoreWeave, Inc. Class A Common Stock:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Equal Weight | 2026-01-12 |
| Wells Fargo | Maintain | Overweight | 2026-01-08 |
| Jefferies | Maintain | Buy | 2026-01-05 |
| DA Davidson | Upgrade | Neutral | 2026-01-05 |
| Goldman Sachs | Maintain | Neutral | 2025-11-17 |
| HC Wainwright & Co. | Maintain | Buy | 2025-11-12 |
| Wells Fargo | Maintain | Overweight | 2025-11-12 |
| Barclays | Maintain | Equal Weight | 2025-11-12 |
| Loop Capital | Maintain | Buy | 2025-11-12 |
| B of A Securities | Maintain | Neutral | 2025-11-11 |
CoreWeave’s grades reflect a stable outlook with a balanced mix of Buy, Overweight, and Neutral ratings across multiple institutions.
Which company has the best grades?
Synopsys, Inc. has received more consistent Buy and Overweight grades compared to CoreWeave, which shows a more mixed rating profile including several Neutral grades. This difference may influence investors seeking stronger analyst conviction.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses of Synopsys, Inc. (SNPS) and CoreWeave, Inc. Class A Common Stock (CRWV) based on the most recent financial and strategic data.
| Criterion | Synopsys, Inc. (SNPS) | CoreWeave, Inc. Class A (CRWV) |
|---|---|---|
| Diversification | Strong diversification with License, Maintenance, and Technology Services revenues exceeding $3.4B | Limited diversification; primarily focused on niche cloud computing services |
| Profitability | Moderate profitability with a net margin of 18.96% but low ROIC at 1.97% (below WACC) | Negative net margin (-45.08%), ROIC low at 2.08%, and very high WACC (84.93%) |
| Innovation | Established player in EDA with consistent technology service revenue growth | Emerging player with innovation potential but currently value destroying |
| Global presence | Solid global footprint with large recurring license and maintenance revenues | Smaller scale with limited global presence and market penetration |
| Market Share | Significant market share in electronic design automation software | Niche market focus, lower market share in cloud infrastructure services |
Key takeaways: Synopsys benefits from a diversified revenue base and reasonable profitability but faces challenges in capital efficiency and value creation. CoreWeave shows innovation potential but currently operates with unfavorable financial metrics and limited diversification, signaling higher risk for investors.
Risk Analysis
Below is a comparative risk assessment for Synopsys, Inc. (SNPS) and CoreWeave, Inc. Class A Common Stock (CRWV) based on the most recent data available.
| Metric | Synopsys, Inc. (SNPS) | CoreWeave, Inc. (CRWV) |
|---|---|---|
| Market Risk | Beta 1.12 (moderate) | Beta 21.65 (extremely high) |
| Debt Level | Debt/Equity 0.5 (neutral) | Debt/Equity -25.68 (unusual) |
| Regulatory Risk | Moderate, US tech sector | Moderate, cloud infrastructure |
| Operational Risk | Established, 20K employees | Smaller, 881 employees |
| Environmental Risk | Standard industry exposure | Moderate, energy-intensive cloud |
| Geopolitical Risk | US-based, global customers | US-based, emerging market focus |
Synopsys exhibits moderate market risk with a stable debt profile and solid operational scale, while CoreWeave faces extremely high market volatility and financial distress signals, including a low Altman Z-score indicating bankruptcy risk. CoreWeave’s rapid growth and niche focus increase operational risk but also potential reward. Investors should weigh CoreWeave’s heightened financial instability and market sensitivity against Synopsys’s steadier, though more moderately performing, profile.
Which Stock to Choose?
Synopsys, Inc. (SNPS) shows a favorable income evolution with 15.12% revenue growth in 2025 and a strong gross margin near 77%. Its financial ratios are mixed, with 35.7% favorable and 35.7% unfavorable, highlighting solid liquidity and moderate debt. Profitability is moderate, but the company is shedding value as ROIC is below WACC, and its rating is very favorable (B-).
CoreWeave, Inc. Class A (CRWV) has a volatile income evolution, marked by exceptional revenue growth (736.64% in 2024) but persistent net margin losses (-45.08%). Financial ratios are mostly unfavorable (71.4%) with weak liquidity and high debt. The company is shedding value with an unfavorable moat and holds a very unfavorable rating (D+).
For investors focused on stability and income quality, SNPS might appear more favorable due to its consistent profitability and moderate debt. Conversely, risk-tolerant investors pursuing aggressive growth could view CRWV’s rapid revenue expansion and potential upside differently, despite its financial weaknesses and valuation risks.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Synopsys, Inc. and CoreWeave, Inc. Class A Common Stock to enhance your investment decisions:
