In the fast-evolving technology sector, Synopsys, Inc. (SNPS) and Rubrik, Inc. (RBRK) stand out as key players in software infrastructure. Synopsys leads in electronic design automation, while Rubrik specializes in data security solutions. Both companies innovate to meet complex industry demands, making their comparison essential for investors seeking growth and resilience. Join me as we explore which company presents the most compelling investment opportunity today.
Table of contents
Companies Overview
I will begin the comparison between Synopsys and Rubrik by providing an overview of these two companies and their main differences.
Synopsys Overview
Synopsys, Inc. specializes in electronic design automation software used to design and test integrated circuits. Its offerings include digital design implementation, verification platforms, FPGA design products, and a broad range of intellectual property solutions for connectivity and embedded systems. Founded in 1986 and based in Mountain View, California, Synopsys serves diverse sectors such as electronics, automotive, medicine, and energy, employing around 20,000 professionals.
Rubrik Overview
Rubrik, Inc. delivers comprehensive data security solutions including enterprise, cloud, and SaaS data protection, alongside cyber recovery and threat analytics. Founded in 2013 and headquartered in Palo Alto, California, Rubrik supports multiple industries like financial services, healthcare, education, and public sectors. It has a workforce of approximately 3,200 employees and went public in 2024, focusing on securing unstructured and structured data globally.
Key similarities and differences
Both Synopsys and Rubrik operate in the software infrastructure industry within the technology sector and are US-based companies. Synopsys primarily focuses on electronic design automation and IP for integrated circuits, whereas Rubrik concentrates on data security and protection services. Synopsys is significantly larger in market cap and employee count, reflecting its established presence since the 1980s, while Rubrik is a newer player with a narrower focus on cybersecurity solutions.
Income Statement Comparison
The table below compares key income statement metrics for Synopsys, Inc. and Rubrik, Inc. for their most recent fiscal year, providing a snapshot of their financial performance.
| Metric | Synopsys, Inc. | Rubrik, Inc. |
|---|---|---|
| Market Cap | 98.8B | 13.4B |
| Revenue | 7.05B | 887M |
| EBITDA | 2.50B | -1.08B |
| EBIT | 1.84B | -1.11B |
| Net Income | 1.33B | -1.15B |
| EPS | 8.13 | -7.48 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Synopsys, Inc.
Synopsys exhibited steady revenue growth from $4.2B in 2021 to $7.05B in 2025, a 67.8% increase overall. Net income rose 75.9% over the same period, reaching $1.33B in 2025, though it declined sharply from $2.26B in 2024. Margins remained favorable, with a gross margin near 77% and a stable net margin around 19%. The latest year saw slower net income and EPS growth, despite solid revenue and EBIT improvements.
Rubrik, Inc.
Rubrik’s revenue grew rapidly from $388M in 2021 to $887M in 2025, a 128.6% rise. However, net income remained deeply negative, worsening to a -$1.15B loss in 2025 after a -$354M loss in 2024. Gross margin stayed favorable at about 70%, but EBIT and net margins were significantly negative, reflecting ongoing heavy operating expenses. The recent year showed strong top-line growth but deteriorating profitability.
Which one has the stronger fundamentals?
Synopsys demonstrates stronger fundamentals with consistent positive net income growth, robust margins, and a favorable overall income statement evaluation. Rubrik, while showing impressive revenue growth, faces substantial net losses and unfavorable EBIT and net margins, indicating weaker profitability and higher risk. Synopsys’s financials suggest more stable and mature earnings compared to Rubrik’s ongoing losses.
Financial Ratios Comparison
The table below compares key financial ratios for Synopsys, Inc. and Rubrik, Inc. based on their most recent fiscal year data, providing insight into profitability, liquidity, leverage, and valuation metrics.
| Ratios | Synopsys, Inc. (SNPS) 2025 | Rubrik, Inc. (RBRK) 2025 |
|---|---|---|
| ROE | 4.72% | 208.55% |
| ROIC | 1.97% | -234.85% |
| P/E | 54.36 | -9.79 |
| P/B | 2.57 | -20.42 |
| Current Ratio | 1.62 | 1.13 |
| Quick Ratio | 1.52 | 1.13 |
| D/E (Debt to Equity) | 0.50 | -0.63 |
| Debt-to-Assets | 29.64% | 24.65% |
| Interest Coverage | 2.05 | -27.49 |
| Asset Turnover | 0.15 | 0.62 |
| Fixed Asset Turnover | 5.04 | 16.67 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Synopsys, Inc.
Synopsys presents a mixed ratio profile with strengths in net margin (18.96%, favorable), current and quick ratios, and fixed asset turnover, indicating operational efficiency and liquidity. However, returns on equity (4.72%) and invested capital (1.97%) are weak, and the PE ratio is relatively high at 54.36, suggesting valuation concerns. The company does not pay dividends, reflecting a likely focus on reinvestment and growth rather than shareholder payouts.
Rubrik, Inc.
Rubrik shows favorable ratios in ROE (208.55%), WACC (5.34%), and several efficiency metrics including fixed asset turnover. Nevertheless, it suffers from a significant negative net margin (-130.26%) and poor interest coverage (-26.84), signaling profitability and solvency challenges. Rubrik also does not distribute dividends, which aligns with its high-growth phase and emphasis on research and development.
Which one has the best ratios?
Rubrik’s ratios skew more favorable overall (57.14% favorable) than Synopsys (35.71%), mainly due to strong ROE and capital efficiency despite profitability weaknesses. Synopsys exhibits balanced liquidity and stable margins but weaker returns and valuation metrics. The choice depends on investor priorities between stability and high-growth potential.
Strategic Positioning
This section compares the strategic positioning of Synopsys and Rubrik, focusing on market position, key segments, and exposure to technological disruption:
Synopsys, Inc.
- Leading in electronic design automation software with NASDAQ listing; faces typical software infrastructure competition.
- Key segments include License, Maintenance, and Technology Services, serving multiple industries including electronics and automotive.
- Provides advanced IP and SoC infrastructure solutions; offers security testing and managed services, adapting to evolving tech needs.
Rubrik, Inc.
- Focused on data security solutions; listed on NYSE; competes in software infrastructure with niche focus.
- Mainly drives revenue through Subscription and Circulation, offering enterprise and cloud data protection solutions.
- Offers data threat analytics and cyber recovery; focuses on protecting unstructured and SaaS data in diverse sectors.
Synopsys vs Rubrik Positioning
Synopsys pursues a diversified approach with broad industry applications and multiple product lines, while Rubrik concentrates on specialized data security and cloud protection. Synopsys benefits from scale, whereas Rubrik targets focused innovation but with a narrower scope.
Which has the best competitive advantage?
Both companies show very unfavorable MOAT evaluations with declining ROIC and value destruction. Neither currently demonstrates a sustainable competitive advantage based on efficient capital use and profitability trends.
Stock Comparison
The stock price movements over the past year reveal contrasting dynamics, with Synopsys, Inc. experiencing a bearish trend marked by high volatility and recent acceleration, while Rubrik, Inc. shows a strong bullish trend but with recent deceleration and increased seller dominance.
Trend Analysis
Synopsys, Inc. (SNPS) exhibited a bearish trend over the past 12 months with a -10.31% price decline, accelerating downward and high volatility marked by a 58.85 standard deviation. The stock reached a high of 621.3 and a low of 388.13.
Rubrik, Inc. (RBRK) showed a bullish trend with a 76.58% price increase over the last year, though the upward momentum decelerated. Volatility was moderate, with a 21.4 standard deviation, and the stock peaked at 97.91 before recent negative pressure.
Comparing trends, Rubrik, Inc. delivered the highest market performance with a 76.58% gain, significantly outperforming Synopsys, Inc., which declined by 10.31% during the same period.
Target Prices
The consensus target prices for Synopsys, Inc. and Rubrik, Inc. reflect optimistic analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Synopsys, Inc. | 600 | 425 | 530 |
| Rubrik, Inc. | 113 | 105 | 109.33 |
Analysts see Synopsys potentially gaining about 2.6% above its current 516.31 USD price, while Rubrik’s consensus target is significantly higher than its present 67.1 USD price, indicating stronger upside expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Synopsys, Inc. and Rubrik, Inc.:
Rating Comparison
SNPS Rating
- Rating: B- indicating a very favorable assessment by analysts.
- Discounted Cash Flow Score: Moderate at 3, suggesting average valuation outlook.
- ROE Score: Moderate at 3, showing average efficiency in generating shareholder returns.
- ROA Score: Moderate at 3, indicating average asset utilization.
- Debt To Equity Score: Moderate at 2, implying a moderate balance sheet risk.
- Overall Score: Moderate at 3, representing an average overall financial standing.
RBRK Rating
- Rating: C, also very favorable according to analyst evaluation.
- Discounted Cash Flow Score: Very unfavorable at 1, indicating potential overvaluation.
- ROE Score: Very favorable at 5, reflecting strong profitability from equity.
- ROA Score: Very unfavorable at 1, suggesting weak asset efficiency.
- Debt To Equity Score: Very unfavorable at 1, indicating higher financial risk.
- Overall Score: Moderate at 2, slightly below SNPS in overall financial metrics.
Which one is the best rated?
Based strictly on the data, SNPS holds a better overall rating (B-) and higher overall score (3) compared to RBRK’s rating (C) and overall score (2). SNPS shows more balanced financial scores, while RBRK excels only in ROE but scores very low in other key metrics.
Scores Comparison
Here is a comparison of the financial health scores for Synopsys and Rubrik:
SNPS Scores
- Altman Z-Score: 3.54, indicating a safe zone from bankruptcy risk.
- Piotroski Score: 4, reflecting average financial strength.
RBRK Scores
- Altman Z-Score: 1.41, indicating distress zone with high bankruptcy risk.
- Piotroski Score: 4, reflecting average financial strength.
Which company has the best scores?
Synopsys has a significantly higher Altman Z-Score placing it in the safe zone, while Rubrik’s score signals financial distress. Both companies share the same average Piotroski Score of 4. Overall, Synopsys displays better financial health based on these scores.
Grades Comparison
Here is a detailed comparison of the recent grades assigned to Synopsys, Inc. and Rubrik, Inc.:
Synopsys, Inc. Grades
The table below summarizes the most recent grade changes and maintenances by 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 |
Synopsys grades predominantly show buy and overweight ratings with a recent slight downgrade from Piper Sandler, indicating a generally positive but cautious sentiment.
Rubrik, Inc. Grades
The following table presents the latest grading actions for Rubrik, Inc. by established grading firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-12 |
| Piper Sandler | Maintain | Overweight | 2026-01-05 |
| Citigroup | Maintain | Buy | 2025-12-08 |
| Piper Sandler | Maintain | Overweight | 2025-12-05 |
| Baird | Maintain | Outperform | 2025-12-05 |
| Keybanc | Maintain | Overweight | 2025-12-05 |
| Rosenblatt | Maintain | Buy | 2025-12-05 |
| William Blair | Upgrade | Outperform | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-12-05 |
| Wedbush | Maintain | Outperform | 2025-12-05 |
Rubrik consistently receives overweight, buy, and outperform ratings, with recent upgrades suggesting strong analyst confidence.
Which company has the best grades?
Both Synopsys and Rubrik hold predominantly positive grades, but Rubrik exhibits a stronger trend toward outperform and overweight designations with multiple recent upgrades. This may reflect greater analyst conviction, potentially affecting investor sentiment and portfolio positioning.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Synopsys, Inc. (SNPS) and Rubrik, Inc. (RBRK) based on their recent financial performance, market position, and innovation capabilities.
| Criterion | Synopsys, Inc. (SNPS) | Rubrik, Inc. (RBRK) |
|---|---|---|
| Diversification | Strong product segmentation with License & Maintenance and Technology Services generating $3.5B and $1.55B respectively in 2025. | Revenue heavily reliant on Subscription ($829M in 2025), less diversified product base. |
| Profitability | Positive net margin at 18.96%, but ROIC (1.97%) below WACC (8.3%), indicating value destruction. | Negative net margin (-130.26%) and ROIC (-234.85%), reflecting significant losses and value destruction. |
| Innovation | Moderate innovation reflected in steady revenue growth but declining ROIC trend (-82%). | Innovation potential is high but overshadowed by steep profitability declines and negative ROIC trend (-219%). |
| Global presence | Established global presence with broad customer base in semiconductor design and software markets. | Emerging presence with growing subscription model but limited international scale. |
| Market Share | Strong position in EDA and IP markets with over $3B in License & Maintenance revenue. | Smaller market share focused on cloud data management and backup, with $828M subscription revenue. |
Key takeaways: Synopsys shows strong diversification and profitability metrics but is losing efficiency in capital use. Rubrik, while innovative with a subscription-driven model, faces steep losses and a challenging path to profitability. Both companies currently destroy value, warranting cautious investment consideration.
Risk Analysis
Below is a comparative table outlining the key risks associated with Synopsys, Inc. (SNPS) and Rubrik, Inc. (RBRK) based on the most recent data from 2025.
| Metric | Synopsys, Inc. (SNPS) | Rubrik, Inc. (RBRK) |
|---|---|---|
| Market Risk | Moderate (Beta 1.12) | Low (Beta 0.28) |
| Debt level | Moderate (Debt-to-Assets 29.6%) | Low (Debt-to-Assets 24.7%) |
| Regulatory Risk | Moderate (Tech industry compliance) | Moderate (Data security regulations) |
| Operational Risk | Moderate (Complex IP and services) | Moderate (Rapid scaling challenges) |
| Environmental Risk | Low (Minimal direct impact) | Low (Minimal direct impact) |
| Geopolitical Risk | Moderate (Global supply chains) | Moderate (Global client base) |
Synopsys faces moderate market and operational risks due to its complex product offerings and industry competition, while Rubrik shows financial distress risk with a low Altman Z-score and negative net margin despite favorable debt levels. Geopolitical and regulatory risks remain relevant for both given their global operations and technology sectors.
Which Stock to Choose?
Synopsys, Inc. (SNPS) shows favorable income evolution with 15.12% revenue growth in 2025 and a strong gross margin of 76.98%. Financial ratios are mixed, with a neutral global rating and moderate profitability. Debt levels are manageable, and the company holds a very favorable B- rating.
Rubrik, Inc. (RBRK) reports strong revenue growth of 41.19% in 2025 but suffers from unfavorable net margins and negative profitability metrics. Although some financial ratios appear favorable, the overall income statement and debt indicators are weak. It holds a very favorable C rating despite financial challenges.
For investors, Synopsys’s stable income growth and balanced financial profile may appear suitable for those seeking moderate stability, while Rubrik’s high revenue growth but volatile profitability could be more aligned with risk-tolerant growth-focused profiles. The contrasting ratings and income evaluations suggest a choice dependent on individual risk appetite and strategy.
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 Rubrik, Inc. to enhance your investment decisions:
