WallStSmart

Blackbaud Inc (BLKB)vsCadence Design Systems Inc (CDNS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 385% more annual revenue ($5.53B vs $1.14B). CDNS leads profitability with a 21.2% profit margin vs 12.4%. BLKB appears more attractively valued with a PEG of 0.31. BLKB earns a higher WallStSmart Score of 68/100 (B-).

BLKB

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 10.0Quality: 3.5
Piotroski: 6/9Altman Z: 0.65

CDNS

Buy

62

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BLKBUndervalued (+37.1%)

Margin of Safety

+37.1%

Fair Value

$80.12

Current Price

$28.31

$51.81 discount

UndervaluedFair: $80.12Overvalued

Intrinsic value data unavailable for CDNS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BLKB4 strengths · Avg: 10.0/10
PEG RatioValuation
0.3110/10

Growing faster than its price suggests

P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
41.9%10/10

Every $100 of equity generates 42 in profit

EPS GrowthGrowth
651.0%10/10

Earnings expanding 651.0% YoY

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

BLKB4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Market CapQuality
$1.28B3/10

Smaller company, higher risk/reward

Price/BookValuation
37.3x2/10

Trading at 37.3x book value

Altman Z-ScoreHealth
0.652/10

Distress zone — elevated risk

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 : BLKB

The strongest argument for BLKB centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.31 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 : BLKB

The primary concerns for BLKB are Revenue Growth, Market Cap, Price/Book. Debt-to-equity of 34.33 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

BLKB profiles as a value 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.

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

Bottom Line

BLKB scores higher overall (68/100 vs 62/100). 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.

Blackbaud Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, businesses, educational institutions, healthcare organizations, and other social concern entities in the United States and internationally. The company is headquartered in Charleston, South Carolina.

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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