American Express Company (AXP)vsCadence Design Systems Inc (CDNS)
AXP
American Express Company
$310.66
+0.53%
FINANCIAL SERVICES · Cap: $212.18B
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 1145% more annual revenue ($68.81B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 16.3%. AXP appears more attractively valued with a PEG of 1.54. AXP earns a higher WallStSmart Score of 68/100 (B-).
AXP
Strong Buy68
out of 100
Grade: B-
CDNS
Buy62
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Strong operational efficiency at 21.2%
Generating 2.7B in free cash flow
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
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AXP
The strongest argument for AXP centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 21.2%. Revenue growth of 11.6% 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 : AXP
The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.78 is elevated, increasing financial risk.
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
AXP profiles as a mature 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.
AXP generates stronger free cash flow (2.7B), providing more financial flexibility.
Bottom Line
AXP scores higher overall (68/100 vs 62/100), backed by strong 16.3% margins and 11.6% 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.
American Express Company
FINANCIAL SERVICES · CREDIT SERVICES · USA
The American Express Company is a multinational financial services corporation headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City.
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.
Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?