Cadence Design Systems Inc (CDNS)vsDonnelley Financial Solutions Inc (DFIN)
CDNS
Cadence Design Systems Inc
$376.19
+0.32%
TECHNOLOGY · Cap: $114.85B
DFIN
Donnelley Financial Solutions Inc
$36.74
-4.60%
TECHNOLOGY · Cap: $1.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 617% more annual revenue ($5.53B vs $771.40M). CDNS leads profitability with a 21.2% profit margin vs 4.5%. DFIN appears more attractively valued with a PEG of 0.97. DFIN earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
DFIN
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-64.2%
Fair Value
$25.13
Current Price
$36.74
$11.61 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
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 23.7%
Earnings expanding 21.0% YoY
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
2.2% revenue growth
Smaller company, higher risk/reward
4.5% margin — thin
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 : DFIN
The strongest argument for DFIN centers on PEG Ratio, Price/Book, Operating Margin. PEG of 0.97 suggests the stock is reasonably priced for its growth.
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 : DFIN
The primary concerns for DFIN are P/E Ratio, Revenue Growth, Market Cap. Thin 4.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
CDNS profiles as a growth stock while DFIN 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 62/100), backed by strong 21.2% margins and 18.7% revenue growth. 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.
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.
Donnelley Financial Solutions Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Donnelley Financial Solutions, Inc. is a global risk and compliance solutions company. The company is headquartered in Chicago, Illinois.
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