Cadence Design Systems Inc (CDNS)vsDescartes Systems Group Inc (DSGX)
CDNS
Cadence Design Systems Inc
$389.04
-2.57%
TECHNOLOGY · Cap: $108.81B
DSGX
Descartes Systems Group Inc
$75.46
-3.14%
TECHNOLOGY · Cap: $6.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 633% more annual revenue ($5.53B vs $753.87M). DSGX leads profitability with a 23.4% profit margin vs 21.2%. DSGX appears more attractively valued with a PEG of 1.32. DSGX earns a higher WallStSmart Score of 69/100 (B-).
CDNS
Buy62
out of 100
Grade: C+
DSGX
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-5.8%
Fair Value
$62.18
Current Price
$75.46
$13.28 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
Strong operational efficiency at 32.9%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 23 of every $100 in revenue as profit
Earnings expanding 34.1% YoY
Areas to Watch
Trading at 16.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
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 : DSGX
The strongest argument for DSGX centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 23.4% and operating margin at 32.9%. Revenue growth of 14.7% demonstrates continued momentum.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 91.7x leaves little room for execution misses.
Bear Case : DSGX
The primary concerns for DSGX are P/E Ratio.
Key Dynamics to Monitor
CDNS profiles as a growth stock while DSGX is a mature play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.15 — 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
DSGX scores higher overall (69/100 vs 62/100), backed by strong 23.4% margins and 14.7% 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.
Descartes Systems Group Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focus on improving productivity, performance and security for intensive logistics companies globally. The company is headquartered in Waterloo, Canada.
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