Arm Holdings plc American Depositary Shares (ARM)vsCadence Design Systems Inc (CDNS)
ARM
Arm Holdings plc American Depositary Shares
$342.93
+1.01%
TECHNOLOGY · Cap: $322.10B
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 12% more annual revenue ($5.53B vs $4.92B). CDNS leads profitability with a 21.2% profit margin vs 18.4%. ARM appears more attractively valued with a PEG of 2.63. ARM earns a higher WallStSmart Score of 63/100 (C+).
ARM
Buy63
out of 100
Grade: C+
CDNS
Buy62
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Strong operational efficiency at 29.5%
Revenue surging 20.1% year-over-year
Earnings expanding 47.9% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 29.7%
18.7% revenue growth
Earnings expanding 23.0% YoY
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 44.0x book value
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ARM
The strongest argument for ARM centers on Market Cap, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 18.4% and operating margin at 29.5%. Revenue growth of 20.1% demonstrates continued momentum.
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 : ARM
The primary concerns for ARM are Piotroski F-Score, PEG Ratio, P/E Ratio. A P/E of 356.1x leaves little room for execution misses.
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
ARM carries more volatility with a beta of 3.41 — expect wider price swings.
ARM is growing revenue faster at 20.1% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARM scores higher overall (63/100 vs 62/100), backed by strong 18.4% margins and 20.1% revenue growth. 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.
Arm Holdings plc American Depositary Shares
TECHNOLOGY · SEMICONDUCTORS · USA
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.
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.
Compare with Other SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?