Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Palo Alto Networks, Inc., Synopsys or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Palo Alto Networks, Inc., Synopsys and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Palo Alto Networks, Inc., Synopsys and Inc.

Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers’ entire AI ecosystem. It provides a comprehensive cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. It provides security operation solutions through the Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR to prevent, detect, and respond to cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. It provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline; and threat intelligence, data loss prevention, services to resolve network disruptions, and sensitive data protection. It offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. 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; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). It has a strategic partnership with OpenAI to revolutionize the design of semiconductors. Synopsys, Inc. has a strategic agreement with Amazon to accelerate Amazon's custom silicon innovation and advance the development of complex AI-powered products and cloud infrastructure. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

Latest Software and Palo Alto Networks, Inc., Synopsys, Inc. Stock News

As of October 12, 2026, Palo Alto Networks, Inc. had a $330.3 billion market capitalization, compared to the Software median of $973.1 million. Palo Alto Networks, Inc.’s stock is NA in 2026, NA in the previous five trading days and up 87.68% in the past year.

Currently, Palo Alto Networks, Inc. does not have a price-earnings ratio. Palo Alto Networks, Inc.’s trailing 12-month revenue is $11.5 billion with a 2.7% net profit margin. Year-over-year quarterly sales growth most recently was 34.5%. Analysts expect adjusted earnings to reach $4.189 per share for the current fiscal year. Palo Alto Networks, Inc. does not currently pay a dividend.

Currently, Synopsys, Inc.’s price-earnings ratio is 89.1. Synopsys, Inc.’s trailing 12-month revenue is $9.4 billion with a 11.4% net profit margin. Year-over-year quarterly sales growth most recently was 42.4%. Analysts expect adjusted earnings to reach $15.139 per share for the current fiscal year. Synopsys, Inc. does not currently pay a dividend.

How We Compare Palo Alto Networks, Inc., Synopsys and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Palo Alto Networks, Inc., Synopsys and Inc.’s stock grades to see how they measure up against one another.

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Palo Alto Networks, Inc., Synopsys and Inc. Stock Value Grades

Company	Ticker	Value
Palo Alto Networks, Inc.	PANW	F
Synopsys, Inc.	SNPS	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Palo Alto Networks, Inc. has a Value Score of 1, which is Ultra Expensive. Synopsys, Inc. has a Value Score of 6, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Palo Alto Networks, Inc., Synopsys or Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Palo Alto Networks, Inc., Synopsys or Inc. is the better investment when it comes to value.

Palo Alto Networks, Inc., Synopsys and Inc. Growth Grades

Company	Ticker	Growth
Palo Alto Networks, Inc.	PANW	B
Synopsys, Inc.	SNPS	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Palo Alto Networks, Inc. has a Growth Score of 69, which is Strong. Synopsys, Inc. has a Growth Score of 89, which is Very Strong.

The Growth Grade Winner: Synopsys, Inc.

As you can clearly see from the Growth Grade breakdown above, Synopsys, Inc. has a more attractive growth grade than Palo Alto Networks, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Synopsys, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Palo Alto Networks, Inc., Synopsys and Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Palo Alto Networks, Inc.	PANW	C
Synopsys, Inc.	SNPS	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Palo Alto Networks, Inc. has a Earnings Estimate Score of 50, which is Neutral. Synopsys, Inc. has a Earnings Estimate Score of 64, which is Positive.

The Earnings Estimate Revisions Grade Winner: Synopsys, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Synopsys, Inc. has a better Earnings Estimate Revisions Grade than Palo Alto Networks, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Synopsys, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Palo Alto Networks, Inc., Synopsys and Inc. Grades

In addition to Value, Growth and Estimate Revisions, A+ Investor also provides grades for Momentum and Quality.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Palo Alto Networks, Inc., Synopsys and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Palo Alto Networks, Inc., Synopsys or Inc. Stock?

Overall, Palo Alto Networks, Inc. stock has a Value Score of 1, Growth Score of 69 and Estimate Revisions Score of 50.

Synopsys, Inc. stock has a Value Score of 6, Growth Score of 89 and Estimate Revisions Score of 64.

Comparing Palo Alto Networks, Inc., Synopsys and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.