WallStSmart

Apple Inc. (AAPL)vsCadence Design Systems Inc (CDNS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Apple Inc. generates 7897% more annual revenue ($466.82B vs $5.84B). AAPL leads profitability with a 27.6% profit margin vs 23.6%. CDNS appears more attractively valued with a PEG of 2.15. CDNS earns a higher WallStSmart Score of 68/100 (B-).

AAPL

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 10.0Value: 4.3Quality: 6.5
Piotroski: 7/9Altman Z: 2.42

CDNS

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 8.5Value: 3.7Quality: 7.5
Piotroski: 4/9Altman Z: 3.09

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAPL6 strengths · Avg: 9.5/10
Market CapQuality
$4.85T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
119.9%10/10

Every $100 of equity generates 120 in profit

Operating MarginProfitability
32.6%10/10

Strong operational efficiency at 32.6%

Free Cash FlowQuality
$31.91B10/10

Generating 31.9B in free cash flow

Profit MarginProfitability
27.6%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
16.4%8/10

16.4% revenue growth

CDNS6 strengths · Avg: 9.2/10
EPS GrowthGrowth
125.4%10/10

Earnings expanding 125.4% YoY

Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Market CapQuality
$79.69B9/10

Large-cap with strong market position

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Profit MarginProfitability
23.6%9/10

Keeps 24 of every $100 in revenue as profit

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Areas to Watch

AAPL3 concerns · Avg: 3.3/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

P/E RatioValuation
37.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
45.1x2/10

Trading at 45.1x book value

CDNS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

P/E RatioValuation
56.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AAPL

The strongest argument for AAPL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.6% and operating margin at 32.6%. Revenue growth of 16.4% demonstrates continued momentum.

Bull Case : CDNS

The strongest argument for CDNS centers on EPS Growth, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.6% and operating margin at 28.6%. Revenue growth of 24.2% demonstrates continued momentum.

Bear Case : AAPL

The primary concerns for AAPL are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : CDNS

The primary concerns for CDNS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 56.5x leaves little room for execution misses.

Key Dynamics to Monitor

CDNS carries more volatility with a beta of 1.14 — expect wider price swings.

CDNS is growing revenue faster at 24.2% — sustainability is the question.

AAPL generates stronger free cash flow (31.9B), providing more financial flexibility.

Monitor CONSUMER ELECTRONICS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CDNS scores higher overall (68/100 vs 67/100), backed by strong 23.6% margins and 24.2% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Apple Inc.

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Apple Inc. is an American multinational technology company that specializes in consumer electronics, computer software, and online services. Apple is the world's largest technology company by revenue (totalling $274.5 billion in 2020) and, since January 2021, the world's most valuable company. As of 2021, Apple is the world's fourth-largest PC vendor by unit sales, and fourth-largest smartphone manufacturer. It is one of the Big Five American information technology companies, along with Amazon, Google, Microsoft, and Facebook.

Visit Website →

Cadence Design Systems Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Cadence Design Systems, Inc., headquartered in San Jose, California, is an American multinational computational software company. The company produces software, hardware and silicon structures for designing integrated circuits, systems on chips (SoCs) and printed circuit boards.

Want to dig deeper into these stocks?