Investors seeking opportunities in the dynamic software infrastructure sector often face the challenge of choosing between established giants and innovative newcomers. Synopsys, Inc. (SNPS) is a long-standing leader in electronic design automation, while Oddity Tech Ltd. (ODD) disrupts the beauty and wellness market with digital-first technology. This article will analyze both companies to reveal which presents the most compelling investment case in 2026.
Table of contents
Companies Overview
I will begin the comparison between Synopsys and Oddity Tech by providing an overview of these two companies and their main differences.
Synopsys Overview
Synopsys, Inc. is a leading provider of electronic design automation software used for designing and testing integrated circuits. It offers a comprehensive suite of platforms and intellectual property solutions across various technology areas including SoC infrastructure, security, and FPGA-based prototyping. Headquartered in Mountain View, California, Synopsys serves diverse industries such as electronics, automotive, and financial services with a workforce of 20,000 employees.
Oddity Tech Overview
Oddity Tech Ltd. operates as a consumer-tech company specializing in beauty and wellness products driven by its PowerMatch technology. The company focuses on building digital-first brands to innovate in the traditionally offline beauty and wellness sectors. Based in Tel Aviv-Jaffa, Israel, Oddity Tech employs 489 people and markets products under brands like IL MAKIAGE and SpoiledChild, targeting skincare, haircare, and cosmetics.
Key similarities and differences
Both Synopsys and Oddity Tech operate in the technology sector but address very different markets and customer needs. Synopsys is focused on software infrastructure for electronic design and testing, catering mainly to industrial and technical clients. In contrast, Oddity Tech targets consumer markets with digitally enabled beauty and wellness products. Additionally, Synopsys is significantly larger by market capitalization and employee count, reflecting its established global presence compared to Oddity Tech’s more recent market entry.
Income Statement Comparison
The table below presents a factual comparison of the most recent fiscal year income statement figures for Synopsys, Inc. and Oddity Tech Ltd., highlighting key financial metrics for investor review.
| Metric | Synopsys, Inc. (SNPS) | Oddity Tech Ltd. (ODD) |
|---|---|---|
| Market Cap | 98.8B | 2.01B |
| Revenue | 7.05B | 647M |
| EBITDA | 2.50B | 125M |
| EBIT | 1.84B | 116M |
| Net Income | 1.33B | 101M |
| EPS | 8.13 | 1.78 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Synopsys, Inc.
Synopsys demonstrated a strong upward trend in revenue, growing 67.8% from 2021 to 2025, with net income also increasing by 75.9% over the period. Margins remained largely favorable; gross margin stood at 77.0% and net margin at 18.9% in 2025. The most recent year showed 15.1% revenue growth but a near 49% drop in net margin, reflecting increased operating expenses relative to revenue.
Oddity Tech Ltd.
Oddity Tech exhibited rapid growth, with revenue surging 485% and net income rising 766% between 2020 and 2024. Margins improved consistently, with a 72.4% gross margin and 15.7% net margin in 2024, all marked favorable. The last fiscal year saw a robust 27.2% revenue increase and a 36.3% net margin improvement, alongside significant gains in earnings per share.
Which one has the stronger fundamentals?
Oddity Tech’s fundamentals show uniformly favorable trends with explosive growth and margin improvement, reflecting strong operational leverage and efficient cost management. Synopsys also presents solid fundamentals with consistent revenue and net income growth, though recent margin compression and rising expenses suggest some operational challenges. Both maintain favorable income profiles, but Oddity’s growth and margin expansions are more pronounced.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Synopsys, Inc. (SNPS) and Oddity Tech Ltd. (ODD) based on the most recent fiscal year data available.
| Ratios | Synopsys, Inc. (SNPS) 2025 | Oddity Tech Ltd. (ODD) 2024 |
|---|---|---|
| ROE | 4.7% | 36.0% |
| ROIC | 2.0% | 28.6% |
| P/E | 54.4 | 23.7 |
| P/B | 2.57 | 8.54 |
| Current Ratio | 1.62 | 1.79 |
| Quick Ratio | 1.52 | 0.99 |
| D/E (Debt-to-Equity) | 0.50 | 0.08 |
| Debt-to-Assets | 29.6% | 5.2% |
| Interest Coverage | 2.05 | 1521.1 |
| Asset Turnover | 0.15 | 1.47 |
| Fixed Asset Turnover | 5.04 | 19.38 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
Synopsys, Inc.
Synopsys shows a mixed ratio profile with favorable net margin (18.96%) and liquidity ratios, but weak returns on equity (4.72%) and invested capital (1.97%). The elevated P/E of 54.36 and low asset turnover indicate valuation and efficiency concerns. No dividend is paid, likely reflecting reinvestment priorities given its technology sector focus and growth phase.
Oddity Tech Ltd.
Oddity Tech displays strong profitability with a high ROE of 35.95% and ROIC of 28.56%, alongside solid liquidity and minimal debt levels. However, the weighted average cost of capital at 18.68% and a high price-to-book ratio of 8.54 may warrant caution. Like Synopsys, it does not pay dividends, consistent with its growth and reinvestment strategy.
Which one has the best ratios?
Oddity Tech presents a more favorable ratio set, with a majority of positive indicators including strong returns, low leverage, and efficient asset use. Synopsys exhibits a more balanced but mixed profile, with notable weaknesses in returns and valuation metrics. Overall, Oddity’s financial ratios appear stronger based on the provided evaluations.
Strategic Positioning
This section compares the strategic positioning of Synopsys, Inc. and Oddity Tech Ltd. regarding market position, key segments, and exposure to technological disruption:
Synopsys, Inc.
- Leading global software infrastructure provider with large market cap, facing moderate competitive pressure.
- Focused on electronic design automation software, IP solutions, and technology services across multiple industries.
- Operates in a mature tech sector with ongoing innovation, but no explicit data on disruption exposure provided.
Oddity Tech Ltd.
- Smaller consumer-tech company focusing on digital-first beauty and wellness brands, exposed to high volatility.
- Concentrated on beauty and wellness products using proprietary PowerMatch technology and digital brand scaling.
- Disrupts offline beauty industry with digital-first approach; technological disruption is central to business model.
Synopsys, Inc. vs Oddity Tech Ltd. Positioning
Synopsys pursues a diversified approach across multiple tech segments and industries, benefiting from scale but facing broad competition. Oddity Tech concentrates on niche beauty tech, leveraging innovation but with higher market volatility and narrower scope.
Which has the best competitive advantage?
Oddity Tech shows a very favorable moat with growing ROIC and value creation, indicating durable competitive advantage. Synopsys displays a very unfavorable moat with declining ROIC, suggesting value destruction and weaker competitive positioning.
Stock Comparison
The stock price movements of Synopsys, Inc. (SNPS) and Oddity Tech Ltd. (ODD) over the past 12 months reveal contrasting bearish trends with different acceleration dynamics and volume patterns, reflecting varied investor sentiment and trading intensity.
Trend Analysis
Synopsys, Inc. experienced a bearish trend with a -10.31% price decline over the past year, marked by accelerating downward momentum. The stock showed high volatility with a standard deviation of 58.85, hitting a high of 621.3 and a low of 388.13.
Oddity Tech Ltd. also faced a bearish trend with a -9.16% price change over the last 12 months, but its decline decelerated. Volatility was much lower at 11.75, with prices ranging between 32.19 and 77.35.
Comparing their market performance, Synopsys delivered a slightly larger negative return than Oddity Tech in the analyzed period. Synopsys showed acceleration in its decline, whereas Oddity Tech’s trend decelerated.
Target Prices
The current analyst consensus presents a clear outlook on target prices for both Synopsys, Inc. and Oddity Tech Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Synopsys, Inc. | 600 | 425 | 530 |
| Oddity Tech Ltd. | 80 | 40 | 66.33 |
Analysts expect Synopsys to trade moderately above its current price of 516.31 USD, while Oddity Tech’s consensus target of 66.33 USD implies significant upside from its current 35.4 USD level.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Synopsys, Inc. and Oddity Tech Ltd.:
Rating Comparison
Synopsys, Inc. Rating
- Rating: B-, considered very favorable by analysts.
- Discounted Cash Flow Score: Moderate at 3 indicates fair valuation.
- ROE Score: Moderate at 3 reflects average profit efficiency.
- ROA Score: Moderate at 3 shows average asset utilization.
- Debt To Equity Score: Moderate at 2 signals moderate financial risk.
- Overall Score: Moderate at 3 reflects balanced overall metrics.
Oddity Tech Ltd. Rating
- Rating: B+, considered very favorable by analysts.
- Discounted Cash Flow Score: Favorable at 4 suggests better valuation.
- ROE Score: Very favorable at 5 indicates strong profit efficiency.
- ROA Score: Favorable at 4 indicates above-average asset use.
- Debt To Equity Score: Moderate at 3 suggests slightly higher leverage.
- Overall Score: Moderate at 3 indicates similar balanced metrics.
Which one is the best rated?
Based strictly on the data, Oddity Tech Ltd. holds a higher rating (B+) and stronger scores in discounted cash flow, ROE, and ROA. Synopsys, Inc. has a lower rating (B-) and generally moderate scores, particularly with a lower debt-to-equity score.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Synopsys and Oddity Tech:
Synopsys Scores
- Altman Z-Score: 3.54, placing it in the safe zone.
- Piotroski Score: 4, indicating an average financial strength.
Oddity Tech Scores
- Altman Z-Score: 3.78, placing it in the safe zone.
- Piotroski Score: 6, indicating an average financial strength.
Which company has the best scores?
Oddity Tech has a slightly higher Altman Z-Score and a better Piotroski Score compared to Synopsys, indicating relatively stronger financial health based on these metrics.
Grades Comparison
The grades for Synopsys, Inc. and Oddity Tech Ltd. from multiple reputable grading companies are as follows:
Synopsys, Inc. Grades
This table summarizes recent grades and actions from key financial institutions 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 strong bias towards buy and overweight ratings, with a recent slight downgrade to neutral by Piper Sandler.
Oddity Tech Ltd. Grades
This table presents recent grades and actions from prominent financial firms for Oddity Tech Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-08 |
| JP Morgan | Maintain | Overweight | 2025-12-12 |
| JP Morgan | Maintain | Overweight | 2025-11-21 |
| Barclays | Maintain | Equal Weight | 2025-11-21 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-21 |
| Needham | Maintain | Buy | 2025-11-20 |
| Keybanc | Maintain | Overweight | 2025-10-08 |
| JMP Securities | Maintain | Market Outperform | 2025-09-23 |
| Morgan Stanley | Maintain | Equal Weight | 2025-08-06 |
| JMP Securities | Maintain | Market Outperform | 2025-08-05 |
Oddity Tech’s grades consistently reflect overweight and market outperform views, with some equal weight ratings maintained by Morgan Stanley and Barclays.
Which company has the best grades?
Both Synopsys, Inc. and Oddity Tech Ltd. have consensus ratings of “Buy,” but Synopsys has more upgrades and repeated buy ratings, while Oddity Tech maintains stable overweight and market outperform grades. Investors might interpret Synopsys’s slight recent downgrade as a signal of cautious sentiment compared to Oddity’s steadier outlook.
Strengths and Weaknesses
Below is a comparative table highlighting the key strengths and weaknesses of Synopsys, Inc. (SNPS) and Oddity Tech Ltd. (ODD) based on their latest financial and strategic data.
| Criterion | Synopsys, Inc. (SNPS) | Oddity Tech Ltd. (ODD) |
|---|---|---|
| Diversification | Moderate product mix: licenses, maintenance, technology services; relies heavily on License and Maintenance segment (~3.5B USD in 2025) | Limited data on product segmentation; appears focused and specialized |
| Profitability | Net margin 18.96%, but low ROIC (1.97%) below WACC (8.3%), indicating value destruction | Strong profitability: Net margin 15.69%, ROIC 28.56% well above WACC (18.68%) |
| Innovation | Moderate innovation with stable technology services segment; facing declining ROIC trend | Demonstrates growing ROIC and durable competitive advantage; likely strong innovation pipeline |
| Global presence | Established global player with broad market reach | Smaller footprint but rapidly growing with expanding market share |
| Market Share | Solid but facing competitive pressures reflected in declining ROIC | Increasing market share supported by favorable financial ratios and growth |
Key takeaways: Oddity Tech shows robust profitability, efficient capital use, and a durable competitive advantage with growing returns, making it attractive for investors focused on growth and value creation. Synopsys, while a larger and more diversified firm, struggles with declining profitability and value destruction, signaling caution despite decent revenue streams.
Risk Analysis
Below is a comparison of key risks for Synopsys, Inc. (SNPS) and Oddity Tech Ltd. (ODD) based on the most recent data available.
| Metric | Synopsys, Inc. (SNPS) | Oddity Tech Ltd. (ODD) |
|---|---|---|
| Market Risk | Beta 1.12, moderate volatility | Beta 3.18, high volatility |
| Debt level | Debt-to-equity 0.5, moderate | Debt-to-equity 0.08, low |
| Regulatory Risk | US tech sector, moderate | Israeli consumer-tech, moderate |
| Operational Risk | Large enterprise, stable ops | Smaller scale, scaling rapidly |
| Environmental Risk | Moderate, tech industry | Moderate, consumer products |
| Geopolitical Risk | US-based, lower exposure | Israel-based, higher exposure |
The most impactful risks are Oddity Tech’s high market volatility and geopolitical exposure, while Synopsys shows moderate financial leverage and operational stability. Oddity’s stronger profitability contrasts with greater market and geopolitical uncertainty. Investors should weigh stability against growth potential carefully.
Which Stock to Choose?
Synopsys, Inc. (SNPS) shows a favorable income evolution with 15.12% revenue growth in 2025 and strong gross and EBIT margins. Financial ratios are mixed, with favorable net margin and liquidity but unfavorable ROE and ROIC. Debt levels are moderate, and the overall rating is very favorable, despite a declining ROIC trend indicating value destruction.
Oddity Tech Ltd. (ODD) exhibits robust income growth with 27.2% revenue increase in 2024 and consistently favorable profitability metrics. Financial ratios are predominantly favorable, including high ROE and ROIC, low debt, and strong interest coverage. The company’s rating is very favorable, supported by a growing ROIC and durable competitive advantage.
For investors prioritizing growth and strong profitability, Oddity Tech’s rising ROIC and favorable financial ratios may appear attractive, while those seeking established stability with moderate risks might find Synopsys’s solid margins and liquidity indicators noteworthy despite its declining ROIC. The choice could depend on the investor’s risk tolerance and strategy focus.
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 Oddity Tech Ltd. to enhance your investment decisions:
