Reviewing Brooks Automation Inc. (BRKS)’s and Synopsys Inc. (NASDAQ:SNPS)’s results

We are comparing Brooks Automation Inc. (NASDAQ:BRKS) and Synopsys Inc. (NASDAQ:SNPS) on their risk, institutional ownership, analyst recommendations, profitability, dividends, earnings and valuation. They both are Semiconductor Equipment & Materials companies, competing one another.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brooks Automation Inc. 668.33M 3.39 72.47M 0.95 28.17
Synopsys Inc. 3.12B 4.82 432.52M 3.93 22.73

Table 1 shows gross revenue, earnings per share (EPS) and valuation of the two companies. Synopsys Inc. is observed to has higher revenue and earnings than Brooks Automation Inc. When business has higher P/E means it is more expensive than its counterpart currently. Brooks Automation Inc. is thus currently the expensive of the two stocks because it has a higher P/E ratio.

Profitability

Table 2 shows the return on equity, net margins and return on assets of the two firms.

Net Margins Return on Equity Return on Assets
Brooks Automation Inc. 10.84% 16.9% 11%
Synopsys Inc. 13.86% 3% 1.7%

Risk & Volatility

Brooks Automation Inc. is 19.00% more volatile than S&P 500 due to its 1.19 beta. From a competition point of view, Synopsys Inc. has a 1.25 beta which is 25.00% more volatile compared to S&P 500.

Liquidity

The Current Ratio and a Quick Ratio of Brooks Automation Inc. are 3.4 and 2.8. Competitively, Synopsys Inc. has 0.7 and 0.7 for Current and Quick Ratio. Brooks Automation Inc.’s better ability to pay short and long-term obligations than Synopsys Inc.

Dividends

Brooks Automation Inc. pays out an annual dividend of $0.4 per share while its dividend yield is 1.31%. Synopsys Inc. does not offer a dividend.

Analyst Recommendations

In next table is given Brooks Automation Inc. and Synopsys Inc.’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Brooks Automation Inc. 0 1 2 2.67
Synopsys Inc. 0 1 3 2.75

The upside potential is 15.33% for Brooks Automation Inc. with average price target of $36.33. Competitively the average price target of Synopsys Inc. is $110.5, which is potential 9.78% upside. The results provided earlier shows that Brooks Automation Inc. appears more favorable than Synopsys Inc., based on analyst opinion.

Insider & Institutional Ownership

Roughly 0% of Brooks Automation Inc. shares are held by institutional investors while 92.8% of Synopsys Inc. are owned by institutional investors. Insiders held 1.8% of Brooks Automation Inc. shares. Insiders Competitively, held 0.2% of Synopsys Inc. shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Brooks Automation Inc. -11.96% -17.24% -25.46% -16.26% 11.89% 12.08%
Synopsys Inc. -2.83% -4.16% -12.92% -1.38% -1.1% 4.81%

For the past year Brooks Automation Inc. was more bullish than Synopsys Inc.

Summary

On 9 of the 16 factors Synopsys Inc. beats Brooks Automation Inc.

Brooks Automation, Inc. provides automation and cryogenic solutions for various applications and markets. It operates through two segments, Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers critical automated transport, vacuum, and contamination controls solutions and services. This segmentÂ’s products include atmospheric and vacuum robots, robotic modules, and tool automation systems that provide precision handling and clean wafer environments; automated cleaning and inspection systems for wafer carriers, as well as reticle pod cleaners and stockers; and vacuum pumping and thermal management solutions for use in critical process vacuum applications. This segment also provides support services, including repair, diagnostic, and installation, as well as spare parts and productivity enhancement upgrades. The Brooks Life Science Systems segment provides automated cold storage systems; consumables, including various formats of racks, tubes, caps, plates and foils; and instruments used for labeling, bar coding, capping, decapping, auditing, sealing, peeling, and piercing tubes and plates. This segment also provides sample management services, such as on-site and off-site sample storage, cold chain logistics, sample relocation, bio-processing solutions, disaster recovery, and business continuity, as well as project management and consulting. In addition, this segment offers sample intelligence software solutions and customer technology integration; and laboratory work flow scheduling for life science tools and instrument work cells, sample inventory and logistics, environmental and temperature monitoring, and clinical trial and consent management, as well as planning, data management, virtualization, and visualization services. The company sells its products and services in approximately 50 countries. Brooks Automation, Inc. was founded in 1978 and is headquartered in Chelmsford, Massachusetts.

Synopsys, Inc. provides electronic design automation (EDA) software products used to design and test integrated circuits (ICs). It offers Galaxy Design platform that provides IC design solutions; Verification Continuum Platform, which 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. The company also provides DesignWare intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip 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, it offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, the company provides Platform Architect tools for SoC architecture analysis and optimization; virtual prototyping solutions for creating virtual prototypes and virtualizer development kits; physical prototyping solutions consisting of HAPS hardware and HAPS protocompiler tools; and hybrid prototyping solutions, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, it offers software quality and security testing tools that help companies reduce the risk of defects and vulnerabilities in development, as well as across the software supply chain; manufacturing solutions that enable semiconductor manufacturers to develop fabrication processes; and professional services and others. The company was founded in 1986 and is headquartered in Mountain View, California.