WallStSmart

ASML Holding NV ADR (ASML)vsCadence Design Systems Inc (CDNS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ASML Holding NV ADR generates 509% more annual revenue ($33.69B vs $5.53B). ASML leads profitability with a 29.7% profit margin vs 21.2%. ASML appears more attractively valued with a PEG of 2.40. CDNS earns a higher WallStSmart Score of 62/100 (C+).

ASML

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 10.0Value: 3.7Quality: 7.5
Piotroski: 6/9Altman Z: 2.42

CDNS

Buy

62

out of 100

Grade: C+

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ASML5 strengths · Avg: 9.6/10
Market CapQuality
$615.85B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.1%10/10

Every $100 of equity generates 48 in profit

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
29.7%9/10

Keeps 30 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

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

ASML4 concerns · Avg: 2.5/10
PEG RatioValuation
2.404/10

Expensive relative to growth rate

P/E RatioValuation
53.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
1452.9x2/10

Trading at 1452.9x book value

Free Cash FlowQuality
$-2.61B2/10

Negative free cash flow — burning cash

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 : ASML

The strongest argument for ASML centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.7% and operating margin at 36.0%. Revenue growth of 13.2% 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 : ASML

The primary concerns for ASML are PEG Ratio, P/E Ratio, Price/Book. A P/E of 53.2x 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

ASML profiles as a mature stock while CDNS is a growth play — different risk/reward profiles.

ASML carries more volatility with a beta of 1.37 — expect wider price swings.

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

CDNS generates stronger free cash flow (307M), providing more financial flexibility.

Bottom Line

ASML scores higher overall (62/100 vs 62/100), backed by strong 29.7% margins and 13.2% 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.

ASML Holding NV ADR

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

ASML Holding NV develops, produces, markets, sells and services advanced semiconductor equipment systems consisting of lithography, metrology and inspection related systems for memory and logic chip manufacturers. The company is headquartered in Veldhoven, the Netherlands.

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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