WallStSmart

Accenture plc (ACN)vsCadence Design Systems Inc (CDNS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Accenture plc generates 1204% more annual revenue ($72.11B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 10.6%. ACN appears more attractively valued with a PEG of 1.38. CDNS earns a higher WallStSmart Score of 62/100 (C+).

ACN

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 7.0Value: 6.7Quality: 6.5
Piotroski: 3/9Altman Z: 2.79

CDNS

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 3.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACNUndervalued (+10.0%)

Margin of Safety

+10.0%

Fair Value

$198.11

Current Price

$178.25

$19.86 discount

UndervaluedFair: $198.11Overvalued

Intrinsic value data unavailable for CDNS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACN5 strengths · Avg: 8.6/10
Market CapQuality
$114.61B9/10

Large-cap with strong market position

Return on EquityProfitability
24.6%9/10

Every $100 of equity generates 25 in profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$3.67B8/10

Generating 3.7B in free cash flow

CDNS6 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Market CapQuality
$114.85B9/10

Large-cap with strong market position

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Operating MarginProfitability
29.7%8/10

Strong operational efficiency at 29.7%

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
23.0%8/10

Earnings expanding 23.0% YoY

Areas to Watch

ACN2 concerns · Avg: 3.5/10
EPS GrowthGrowth
4.0%4/10

4.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

CDNS3 concerns · Avg: 2.7/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

PEG RatioValuation
3.932/10

Expensive relative to growth rate

P/E RatioValuation
96.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ACN

The strongest argument for ACN centers on Market Cap, Return on Equity, Debt/Equity. PEG of 1.38 suggests the stock is reasonably priced for its growth.

Bull Case : CDNS

The strongest argument for CDNS centers on Altman Z-Score, Market Cap, Profit Margin. Profitability is solid with margins at 21.2% and operating margin at 29.7%. Revenue growth of 18.7% demonstrates continued momentum.

Bear Case : ACN

The primary concerns for ACN are EPS Growth, Piotroski F-Score.

Bear Case : CDNS

The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 96.6x leaves little room for execution misses.

Key Dynamics to Monitor

ACN profiles as a value stock while CDNS is a growth play — different risk/reward profiles.

CDNS carries more volatility with a beta of 1.13 — expect wider price swings.

CDNS is growing revenue faster at 18.7% — sustainability is the question.

ACN generates stronger free cash flow (3.7B), providing more financial flexibility.

Bottom Line

ACN scores higher overall (62/100 vs 62/100). Both earn "Buy" and "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.

Accenture plc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Accenture plc is an Irish-domiciled multinational company that provides consulting and processing services. It has been incorporated in Dublin, Ireland since 2009.

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.

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