Adobe Systems Incorporated (ADBE)vsCadence Design Systems Inc (CDNS)
ADBE
Adobe Systems Incorporated
$243.57
+1.04%
TECHNOLOGY · Cap: $104.33B
CDNS
Cadence Design Systems Inc
$329.95
-0.11%
TECHNOLOGY · Cap: $91.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Adobe Systems Incorporated generates 362% more annual revenue ($24.45B vs $5.30B). ADBE leads profitability with a 29.5% profit margin vs 20.9%. ADBE appears more attractively valued with a PEG of 0.70. ADBE earns a higher WallStSmart Score of 74/100 (B).
ADBE
Strong Buy74
out of 100
Grade: B
CDNS
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.7%
Fair Value
$440.62
Current Price
$243.57
$197.05 discount
Intrinsic value data unavailable for CDNS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 59 in profit
Strong operational efficiency at 38.8%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 30 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 32.8%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Keeps 21 of every $100 in revenue as profit
Areas to Watch
Trading at 8.6x book value
Trading at 16.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ADBE
The strongest argument for ADBE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 29.5% and operating margin at 38.8%. Revenue growth of 12.0% demonstrates continued momentum.
Bull Case : CDNS
The strongest argument for CDNS centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 20.9% and operating margin at 32.8%.
Bear Case : ADBE
The primary concerns for ADBE are Price/Book.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 81.9x leaves little room for execution misses.
Key Dynamics to Monitor
ADBE carries more volatility with a beta of 1.52 — expect wider price swings.
ADBE is growing revenue faster at 12.0% — sustainability is the question.
ADBE generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADBE scores higher overall (74/100 vs 62/100), backed by strong 29.5% margins and 12.0% revenue growth. Both earn "Strong 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.
Adobe Systems Incorporated
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.
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.
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