Forbes·2025-11-05 17:01Core Insights - Synopsys stock experienced a decline of 6.6% following weaker-than-expected Q3 2025 earnings and is facing a class-action lawsuit regarding the concealment of information about its Design-IP division [3][4] - Oracle's stock, despite recent pressures, is considered a more attractive investment option due to its strong AI-related cloud backlog and superior financial metrics [3][4] Financial Performance Comparison - Oracle's revenue growth over the last 12 months was 9.7%, surpassing Synopsys's 8.0% growth [7] - Over the past three years, Oracle's average revenue growth was 10.2%, compared to Synopsys's 9.7% [7] - Oracle's profitability is higher, with a last twelve months (LTM) margin of 31.6% and a three-year average margin of 30.3%, outperforming Synopsys [7] Investment Strategy Insights - Regular assessment of investment alternatives is crucial for a solid investment strategy, with Oracle being highlighted as a potentially wiser investment compared to Synopsys [4] - Investing in a diversified portfolio is recommended to minimize risks associated with single-stock investments [5][8]