Head to Head Analysis: Synopsys (NASDAQ:SNPS) versus Rand Worldwide (OTCMKTS:RWWI)

Rand Worldwide (OTCMKTS:RWWI) and Synopsys (NASDAQ:SNPS) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Earnings and Valuation

This table compares Rand Worldwide and Synopsys”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rand Worldwide	$408.11 million	1.17	$52.43 million	$1.33	10.65
Synopsys	$6.44 billion	11.08	$2.26 billion	$12.74	30.13

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

Insider & Institutional Ownership

0.0% of Rand Worldwide shares are held by institutional investors. Comparatively, 85.5% of Synopsys shares are held by institutional investors. 59.2% of Rand Worldwide shares are held by insiders. Comparatively, 0.6% of Synopsys shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Rand Worldwide has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Synopsys has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Rand Worldwide and Synopsys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rand Worldwide	18.60%	106.88%	18.94%
Synopsys	31.04%	10.82%	6.16%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Rand Worldwide and Synopsys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rand Worldwide	0	0	0	0	0.00
Synopsys	3	6	9	0	2.33

Synopsys has a consensus target price of $562.14, suggesting a potential upside of 46.46%. Given Synopsys’ stronger consensus rating and higher probable upside, analysts clearly believe Synopsys is more favorable than Rand Worldwide.

Summary

Synopsys beats Rand Worldwide on 11 of the 14 factors compared between the two stocks.

About Rand Worldwide

Rand Worldwide, Inc. provides design automation and data management solutions primarily in the United States and Canada. It operates in five divisions: IMAGINiT Technologies, Rand Simulation, Facilities Management, ASCENT, and Rand 3D. The IMAGINiT Technologies division resells Autodesk solutions and system integration, and consulting services to customers in the manufacturing, infrastructure, building, and media and entertainment industries; resells Twinmotion visualization software, which provides design professionals to transform architectural models and designs into photorealistic images and immersive videos; offers a range of 3D laser scanning equipment and related software to help architectural, engineering, and construction firms; and sells its own proprietary software products and related services. The Rand Simulation division offers Ansys engineering simulation software to help organizations incorporate engineering simulation technology into the product development process; and provides simulation consulting services to enable organizations to achieve cost savings and design improvements through simulation technology. The Facilities Management division provides ARCHIBUS products for facilities management software for space planning, strategic planning, and lease/property administration; and offers various training, consulting, and support services for the ARCHIBUS products. The ASCENT division provides professional training materials and knowledge products for engineering software tools. The Rand 3D division offers training solutions for Dassault Systèmes and PTC products, including Pro/ENGINEER, CREO, and Windchill. Rand Worldwide, Inc. is based in Baltimore, Maryland.

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.