Bill Com Holdings Inc (BILL)vsCadence Design Systems Inc (CDNS)
BILL
Bill Com Holdings Inc
$35.97
+0.03%
TECHNOLOGY · Cap: $3.30B
CDNS
Cadence Design Systems Inc
$376.19
+2.48%
TECHNOLOGY · Cap: $114.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 245% more annual revenue ($5.53B vs $1.60B). CDNS leads profitability with a 21.2% profit margin vs 0.0%. BILL appears more attractively valued with a PEG of 0.33. CDNS earns a higher WallStSmart Score of 62/100 (C+).
BILL
Buy55
out of 100
Grade: C-
CDNS
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.7%
Fair Value
$243.50
Current Price
$35.97
$207.53 discount
Intrinsic value data unavailable for CDNS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
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
0.0% earnings growth
ROE of 0.0% — below average capital efficiency
0.0% margin — thin
Operating margin of 1.1%
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BILL
The strongest argument for BILL centers on PEG Ratio, Price/Book. Revenue growth of 13.5% demonstrates continued momentum. PEG of 0.33 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 : BILL
The primary concerns for BILL are EPS Growth, Return on Equity, Profit Margin. Thin 0.0% margins leave little buffer for downturns.
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
BILL profiles as a value stock while CDNS is a growth play — different risk/reward profiles.
BILL carries more volatility with a beta of 1.18 — 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
CDNS scores higher overall (62/100 vs 55/100), backed by strong 21.2% margins and 18.7% revenue growth. BILL offers better value entry with a 80.7% margin of safety. 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.
Bill Com Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Bill.com Holdings, Inc. provides cloud-based software that digitizes and automates financial back-office operations for small and medium-sized businesses globally. The company is headquartered in Palo Alto, California.
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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