WallStSmart

Cadence Design Systems Inc (CDNS)vsCanadian Imperial Bank Of Commerce (CM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Imperial Bank Of Commerce generates 405% more annual revenue ($27.91B vs $5.53B). CM leads profitability with a 33.5% profit margin vs 21.2%. CM appears more attractively valued with a PEG of 2.10. CM earns a higher WallStSmart Score of 73/100 (B).

CDNS

Buy

62

out of 100

Grade: C+

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

CM

Strong Buy

73

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 5.7Quality: 3.0
Piotroski: 5/9Altman Z: -0.62

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

CM6 strengths · Avg: 9.2/10
Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
44.7%10/10

Strong operational efficiency at 44.7%

Free Cash FlowQuality
$15.90B10/10

Generating 15.9B in free cash flow

Market CapQuality
$106.24B9/10

Large-cap with strong market position

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

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

CM3 concerns · Avg: 2.3/10
PEG RatioValuation
2.104/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.622/10

Distress zone — elevated risk

Debt/EquityHealth
2.761/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : CM

The strongest argument for CM centers on Profit Margin, Operating Margin, Free Cash Flow. Profitability is solid with margins at 33.5% and operating margin at 44.7%. Revenue growth of 16.7% demonstrates continued momentum.

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.

Bear Case : CM

The primary concerns for CM are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.76 is elevated, increasing financial risk.

Key Dynamics to Monitor

CM carries more volatility with a beta of 1.30 — expect wider price swings.

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

CM generates stronger free cash flow (15.9B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CM scores higher overall (73/100 vs 62/100), backed by strong 33.5% margins and 16.7% 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.

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.

Canadian Imperial Bank Of Commerce

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Canadian Imperial Bank of Commerce, a diversified financial institution, offers a variety of financial products and services to personal, commercial, public sector, and institutional clients in Canada, the United States, and internationally. The company is headquartered in Toronto, Canada.

Visit Website →

Want to dig deeper into these stocks?