WallStSmart

Cadence Design Systems Inc (CDNS)vsCommVault Systems Inc (CVLT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 367% more annual revenue ($5.53B vs $1.18B). CDNS leads profitability with a 21.2% profit margin vs 6.0%. CVLT appears more attractively valued with a PEG of 3.17. CDNS earns a higher WallStSmart Score of 62/100 (C+).

CDNS

Buy

62

out of 100

Grade: C+

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

CVLT

Hold

46

out of 100

Grade: D+

Growth: 5.3Profit: 6.5Value: 4.0Quality: 3.5
Piotroski: 3/9Altman Z: 0.12
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

CVLTUndervalued (+20.5%)

Margin of Safety

+20.5%

Fair Value

$110.46

Current Price

$118.68

$8.22 discount

UndervaluedFair: $110.46Overvalued

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

CVLT1 strengths · Avg: 10.0/10
Return on EquityProfitability
942.9%10/10

Every $100 of equity generates 943 in profit

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

CVLT4 concerns · Avg: 2.5/10
Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.172/10

Expensive relative to growth rate

P/E RatioValuation
80.9x2/10

Premium valuation, high expectations priced in

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 : CVLT

The strongest argument for CVLT centers on Return on Equity. Revenue growth of 13.3% 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 : CVLT

The primary concerns for CVLT are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 80.9x leaves little room for execution misses. Debt-to-equity of 122.43 is elevated, increasing financial risk.

Key Dynamics to Monitor

CDNS profiles as a growth stock while CVLT is a value 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

CDNS scores higher overall (62/100 vs 46/100), backed by strong 21.2% margins and 18.7% revenue growth. CVLT offers better value entry with a 20.5% margin of safety. Both earn "Buy" and "Hold" 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.

CommVault Systems Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States and internationally. The company is headquartered in Tinton Falls, New Jersey.

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