In the dynamic world of technology infrastructure, Synopsys, Inc. (SNPS) and Nutanix, Inc. (NTNX) emerge as key players driving innovation and market evolution. Both companies operate in the software infrastructure sector, focusing on cutting-edge solutions that serve a broad spectrum of industries. This comparison highlights their strategies, market presence, and growth potential to help you, the investor, identify which company offers the most compelling opportunity for your portfolio in 2026.
Table of contents
Companies Overview
I will begin the comparison between Synopsys and Nutanix by providing an overview of these two companies and their main differences.
Synopsys Overview
Synopsys, Inc. operates in the software infrastructure industry, focusing on electronic design automation. The company delivers a broad range of solutions including digital design implementation, verification, and FPGA-based prototyping. With a market cap near 99B USD and a workforce of 20,000 employees, Synopsys serves diverse sectors such as electronics, automotive, and financial services from its Mountain View, California headquarters.
Nutanix Overview
Nutanix, Inc. provides an enterprise cloud platform encompassing virtualization, storage, networking, and hybrid cloud orchestration. Headquartered in San Jose, California, Nutanix supports industries like healthcare, education, and telecommunications. The company’s market cap stands at approximately 12.4B USD, with 7,150 employees, offering products such as Kubernetes cluster management and desktop-as-a-service solutions internationally.
Key similarities and differences
Both Synopsys and Nutanix operate within the software infrastructure sector and are listed on NASDAQ. Synopsys emphasizes electronic design automation and IP solutions for integrated circuits, while Nutanix specializes in cloud computing and virtualization platforms. Synopsys has a significantly larger market cap and employee base, reflecting differing scales and focus areas within technology infrastructure services.
Income Statement Comparison
The following table compares key income statement metrics for Synopsys, Inc. and Nutanix, Inc. for their most recent fiscal year.
| Metric | Synopsys, Inc. (SNPS) | Nutanix, Inc. (NTNX) |
|---|---|---|
| Market Cap | 98.8B | 12.4B |
| Revenue | 7.05B | 2.54B |
| EBITDA | 2.50B | 293M |
| EBIT | 1.84B | 220M |
| Net Income | 1.33B | 188M |
| EPS | 8.13 | 0.70 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Synopsys, Inc.
Synopsys has shown consistent revenue growth from $4.2B in 2021 to $7.1B in 2025, with net income rising from $758M to $1.3B over the same period. Margins remain favorable, with a gross margin near 77% and an EBIT margin above 26% in 2025. However, the latest year saw net margin and EPS decline despite revenue growth, signaling margin pressure.
Nutanix, Inc.
Nutanix exhibited strong revenue expansion from $1.4B in 2021 to $2.5B in 2025, alongside a turnaround from net losses to $188M net income. The company’s gross margin stands at 86.8%, with improving EBIT and net margins reflecting operational progress. The recent year showed robust growth in revenue, margins, and profitability, indicating strengthening fundamentals.
Which one has the stronger fundamentals?
Both companies demonstrate favorable income statement trends, but Nutanix’s higher gross margin and significant margin expansion from losses to profit indicate stronger recent operational improvements. Synopsys maintains higher absolute revenue and profitability with stable margins, although it faces some margin contraction. Nutanix shows more pronounced growth momentum and margin gains in the latest year.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Synopsys, Inc. and Nutanix, Inc. based on their most recent fiscal year data.
| Ratios | Synopsys, Inc. (SNPS) | Nutanix, Inc. (NTNX) |
|---|---|---|
| ROE | 4.7% | -27.1% |
| ROIC | 1.97% | 8.11% |
| P/E | 54.4 | 106.7 |
| P/B | 2.57 | -28.95 |
| Current Ratio | 1.62 | 1.72 |
| Quick Ratio | 1.52 | 1.72 |
| D/E | 0.50 | -2.14 |
| Debt-to-Assets | 29.6% | 45.2% |
| Interest Coverage | 2.05 | 8.75 |
| Asset Turnover | 0.15 | 0.77 |
| Fixed Asset Turnover | 5.04 | 9.15 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
Synopsys, Inc.
Synopsys shows mixed financial strength with a solid net margin of 18.96% and favorable liquidity ratios (current ratio 1.62, quick ratio 1.52). However, its return on equity (4.72%) and return on invested capital (1.97%) are weak, alongside a high P/E of 54.36. The company does not pay dividends, focusing instead on reinvestment and growth priorities.
Nutanix, Inc.
Nutanix presents a more favorable ratio profile with 50% favorable metrics, including a strong current and quick ratio of 1.72 and high interest coverage of 11.15. Despite a negative return on equity (-27.12%) and a high P/E of 106.74, it maintains a neutral net margin of 7.42%. Nutanix does not pay dividends, reflecting reinvestment in growth and R&D.
Which one has the best ratios?
Nutanix has a slightly more favorable overall ratio profile due to stronger liquidity, coverage, and asset turnover metrics, despite profitability challenges. Synopsys shows a balanced but more neutral stance with some strong margins but weaker returns and valuation concerns. Both companies do not distribute dividends, prioritizing growth and reinvestment.
Strategic Positioning
This section compares the strategic positioning of Synopsys, Inc. and Nutanix, Inc. in terms of market position, key segments, and exposure to technological disruption:
Synopsys, Inc.
- Leading player in electronic design automation, facing competition in software infrastructure.
- Focuses on electronic design automation, IP solutions, and technology services driving revenue growth.
- Moderate exposure to technological shifts in semiconductor design and security testing.
Nutanix, Inc.
- Enterprise cloud platform provider with moderate market capitalization and competitive pressure.
- Concentrates on enterprise cloud, virtualization, and hybrid cloud management services.
- Faces disruption risks in cloud-native and hybrid cloud enterprise environments.
Synopsys, Inc. vs Nutanix, Inc. Positioning
Synopsys exhibits a diversified product portfolio across electronic design and IP solutions, while Nutanix has a concentrated focus on enterprise cloud and virtualization. Synopsys benefits from broad industry coverage, Nutanix from specialized cloud services.
Which has the best competitive advantage?
Nutanix shows a very favorable moat with growing ROIC and value creation, indicating a durable competitive advantage. Synopsys has a very unfavorable moat with declining ROIC, suggesting it is currently shedding value.
Stock Comparison
The stock price movements over the past 12 months reveal contrasting dynamics between Synopsys, Inc. and Nutanix, Inc., with notable shifts in trend acceleration and volume dominance influencing trading behavior.
Trend Analysis
Synopsys, Inc. experienced a bearish trend with a -10.31% price decline over the past year, marked by accelerating downward momentum and high volatility, reaching a high of 621.3 and a low of 388.13. Recent months show a bullish rebound of 13.77%, indicating a short-term recovery phase.
Nutanix, Inc. faced a more pronounced bearish trend with a -22.16% price decrease over the same period, but its decelerating trend suggests slowing losses. The stock reached a peak of 82.77 and bottomed at 45.74, while recent months saw further decline of -35.79%, intensifying the negative slope.
Comparing both, Synopsys delivered the highest market performance over the year despite its overall bearish trend, supported by recent gains, whereas Nutanix posted a steeper and more volatile decline with weaker recent performance.
Target Prices
Analysts present a solid target price consensus for Synopsys, Inc. and Nutanix, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Synopsys, Inc. | 600 | 425 | 530 |
| Nutanix, Inc. | 90 | 53 | 64.67 |
The consensus target for Synopsys at 530 is slightly above its current price of 516.31, suggesting moderate upside potential. Nutanix’s consensus target of 64.67 is significantly higher than its current price of 45.74, indicating stronger expected growth by analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Synopsys, Inc. and Nutanix, Inc.:
Rating Comparison
Synopsys, Inc. Rating
- Rating: B-, considered very favorable by analysts.
- Discounted Cash Flow Score: Moderate at 3.
- ROE Score: Moderate at 3, indicating average efficiency.
- ROA Score: Moderate at 3, reflecting average asset use.
- Debt To Equity Score: Moderate at 2, moderate risk.
- Overall Score: Moderate at 3.
Nutanix, Inc. Rating
- Rating: C+, also considered very favorable by analysts.
- Discounted Cash Flow Score: Favorable at 4.
- ROE Score: Very unfavorable at 1, showing weak profitability.
- ROA Score: Favorable at 4, indicating strong asset utilization.
- Debt To Equity Score: Very unfavorable at 1, higher financial risk.
- Overall Score: Moderate at 2.
Which one is the best rated?
Synopsys holds a higher overall rating (B-) and scores more consistently across key financial metrics than Nutanix, which has a lower overall score and significant weaknesses in ROE and debt management.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Synopsys, Inc. and Nutanix, Inc.:
Synopsys, Inc. Scores
- Altman Z-Score: 3.54, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 4, categorized as average financial strength.
Nutanix, Inc. Scores
- Altman Z-Score: 1.48, indicating distress zone with high bankruptcy risk.
- Piotroski Score: 6, categorized as average financial strength.
Which company has the best scores?
Synopsys has a significantly higher Altman Z-Score placing it in the safe zone, compared to Nutanix’s distress zone score. Both companies have average Piotroski Scores, but Synopsys shows stronger financial stability based on the Altman metric.
Grades Comparison
The following section compares the recent grades provided by reputable grading companies for Synopsys, Inc. and Nutanix, Inc.:
Synopsys, Inc. Grades
This table shows recent grade updates from recognized 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 |
Overall, Synopsys shows a predominantly positive grade trend, with multiple Buy and Overweight ratings, though one recent downgrade to Neutral has appeared.
Nutanix, Inc. Grades
This table shows recent grade updates from recognized grading companies for Nutanix, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Downgrade | Equal Weight | 2026-01-15 |
| Morgan Stanley | Downgrade | Equal Weight | 2026-01-12 |
| RBC Capital | Maintain | Outperform | 2026-01-05 |
| Goldman Sachs | Maintain | Buy | 2025-11-28 |
| JP Morgan | Maintain | Overweight | 2025-11-26 |
| Needham | Maintain | Buy | 2025-11-26 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-26 |
| Morgan Stanley | Maintain | Overweight | 2025-11-26 |
| Keybanc | Maintain | Overweight | 2025-11-26 |
| Piper Sandler | Maintain | Overweight | 2025-11-26 |
Nutanix’s grades reflect a mixed trend with recent downgrades to Equal Weight but maintaining several Overweight and Buy ratings.
Which company has the best grades?
Both Synopsys and Nutanix have a consensus Buy rating with numerous Buy and Overweight designations. Synopsys exhibits a stronger recent upgrade momentum, while Nutanix has experienced some recent downgrades. This contrast could affect investor sentiment regarding near-term performance expectations.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Synopsys, Inc. (SNPS) and Nutanix, Inc. (NTNX) based on the most recent financial and operational data.
| Criterion | Synopsys, Inc. (SNPS) | Nutanix, Inc. (NTNX) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from License & Maintenance (3.49B) and Technology Services (1.55B) | Moderate: Revenue primarily from Subscription and Circulation (2.02B) and Services (1.01B) |
| Profitability | Mixed: Net margin strong at 18.96%, but ROIC (1.97%) below WACC (8.3%), indicating value destruction | Moderate: Net margin low at 7.42%, ROIC (8.11%) above WACC (5.89%), showing value creation |
| Innovation | Challenged: Declining ROIC trend (-82%), suggesting weakening competitive edge | Strong: Growing ROIC trend (+117%), indicating durable competitive advantage |
| Global presence | Established: Solid fixed asset turnover (5.04) and stable liquidity ratios | Established: High fixed asset turnover (9.15) and strong liquidity (current ratio 1.72) |
| Market Share | Large in semiconductor EDA tools but facing margin pressure | Growing in cloud software market with improving profitability |
Key takeaways: Nutanix shows a more favorable economic moat with growing profitability and efficient capital use, whereas Synopsys struggles with declining returns despite solid revenue streams. Investors should weigh Nutanix’s growth potential against Synopsys’s current value erosion risk.
Risk Analysis
Below is a comparative table of key risks for Synopsys, Inc. (SNPS) and Nutanix, Inc. (NTNX) based on the most recent data from 2025.
| Metric | Synopsys, Inc. (SNPS) | Nutanix, Inc. (NTNX) |
|---|---|---|
| Market Risk | Beta 1.12; moderate market volatility exposure | Beta 0.49; lower market volatility exposure |
| Debt level | Debt-to-Equity 0.5; moderate leverage | Debt-to-Equity -2.14; unusual negative value, but interest coverage strong |
| Regulatory Risk | Moderate; tech sector compliance required | Moderate; cloud services face evolving regulations |
| Operational Risk | Moderate; complex software development and IP management | Moderate; dependency on hybrid cloud adoption and execution |
| Environmental Risk | Low; software industry with limited direct environmental impact | Low; similar sector exposure with minimal environmental footprint |
| Geopolitical Risk | Moderate; global supply chain and customer base | Moderate; international presence across multiple regions |
The most impactful risks are market volatility for Synopsys due to its higher beta and Nutanix’s financial distress signals, reflected in a low Altman Z-Score (1.48, distress zone) indicating bankruptcy risk. Synopsys shows stronger financial stability with a safe Altman Z-Score (3.54). Both companies face operational and regulatory risks inherent to the technology and cloud infrastructure sectors. Caution is advised especially with Nutanix’s financials despite its attractive cloud platform offerings.
Which Stock to Choose?
Synopsys, Inc. (SNPS) shows favorable income growth with a 67.79% revenue increase over 2021-2025 and strong gross and EBIT margins. However, profitability ratios like ROE and ROIC are unfavorable, and its MOAT evaluation signals value destruction with declining ROIC. Debt levels remain moderate, and the overall rating is very favorable with a moderate score profile.
Nutanix, Inc. (NTNX) exhibits strong income growth, notably 82.01% revenue growth and improved net margin over the period, with a very favorable MOAT indicating value creation and increasing profitability. Financial ratios are slightly favorable overall but show a negative ROE and mixed debt profile. The company’s rating is very favorable, yet with moderate to unfavorable scores in key metrics.
Investors seeking growth with a focus on improving profitability and a durable competitive advantage might find Nutanix’s profile attractive, while those valuing stable income quality and moderate debt might interpret Synopsys’s metrics as more balanced despite its declining ROIC. The choice could depend on the investor’s tolerance for risk and preference for value creation versus financial stability.
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 Nutanix, Inc. to enhance your investment decisions:
