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ANSYS’s Performance in a Competitive Market

ANSYS Reported Strong Results in 3Q15

(Continued from Prior Part)

ANSYS and its peers

In this article, we’ll compare ANSYS with its peers on several key measures:

  • The PE (price-to-earnings) ratios of ANSYS (ANSS), Synopsys (SNPS), Cadence Design Systems (CDNS), PTC (PTC), and Mentor Graphics (MENT) are 34.2x, 33.7x, 29.6x, 46.5x, and 20.6x, respectively.

  • The PBV (price-to-book value) ratios of ANSYS, Synopsys, Cadence Design, PTC, and Mentor Graphics are 3.7x, 2.5x, 4.6x, 5.0x, and 2.4x, respectively.

  • The price-to-sales ratios of ANSYS, Synopsys, Cadence Design, PTC, and Mentor Graphics are 8.9x, 3.6x, 4.0x, 3.2x, and 2.5x, respectively.

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Thus, ANSYS has outperformed most of its peers based on PE and price-to-sales ratios.

ETFs that invest in ANSYS

The PowerShares Dynamic Software Portfolio ETF (PSJ) invests 5.1% of its holdings in ANSYS. The ETF uses a quantitative model to choose US software companies across the market cap spectrum.

The PowerShares Cleantech Portfolio (PZD) invests 3.0% of its holdings in ANSYS. The ETF tracks a tiered equal-weighted index of companies in the cleantech industry selected for their outperformance potential.

The iShares S&P North American Technology-Software ETF (IGV) invests 1.8% of its holdings in ANSYS. The ETF tracks a market cap–weighted index of US and Canadian software companies.

Comparing ANSYS and its ETFs

Now let’s compare ANSYS with the ETFs that invest in it:

  • The YTD (year-to-date) price movements of ANSYS, PSJ, PZD, and IGV are 13.9%, 11.6%, 2.9%, and 14.4%, respectively.

  • The PE ratios of ANSYS, PSJ, PZD, and IGV are 34.2x, 27.2x, 28.5x, and 52.4x, respectively.

  • The PBV ratios of ANSYS, PSJ, PZD, and IGV are 3.7x, 4.3x, 2.5x, and 4.9x, respectively.

According to the above findings, ETFs have mostly outperformed ANSYS based on PBV ratio. However, ANSYS is ahead of most of its ETFs based on price movement and PE ratio.

Browse this series on Market Realist: