Cadence Design Systems Inc (CDNS)vsClearwater Analytics Holdings Inc (CWAN)
CDNS
Cadence Design Systems Inc
$376.19
+2.48%
TECHNOLOGY · Cap: $114.85B
CWAN
Clearwater Analytics Holdings Inc
$24.37
-0.04%
TECHNOLOGY · Cap: $7.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 570% more annual revenue ($5.53B vs $825.73M). CDNS leads profitability with a 21.2% profit margin vs -5.8%. CDNS appears more attractively valued with a PEG of 3.93. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
CWAN
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-16.1%
Fair Value
$20.33
Current Price
$24.37
$4.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Revenue surging 74.4% year-over-year
Earnings expanding 202.8% YoY
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : CWAN
The strongest argument for CWAN centers on Revenue Growth, EPS Growth. Revenue growth of 74.4% 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 : CWAN
The primary concerns for CWAN are Altman Z-Score, Operating Margin, Piotroski F-Score.
Key Dynamics to Monitor
CDNS profiles as a growth stock while CWAN is a hypergrowth play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
CWAN is growing revenue faster at 74.4% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 43/100), backed by strong 21.2% margins and 18.7% revenue growth. 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.
Clearwater Analytics Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Clearwater Analytics Holdings Inc. (CWAN) is a leading provider of innovative, cloud-based investment accounting and analytics solutions designed for investment firms, insurance companies, and multinational corporations. Its advanced platform enhances portfolio management and reporting capabilities, enabling clients to make informed strategic investment decisions while maintaining operational efficiency and regulatory compliance. Positioned at the forefront of the rapidly evolving financial technology sector, Clearwater is well-equipped to capitalize on the growing demand for comprehensive investment solutions, driving sustained growth and ongoing innovation within the financial services industry.
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