Cadence Design Systems Inc (CDNS)vsDynatrace Holdings LLC (DT)
CDNS
Cadence Design Systems Inc
$376.19
+0.32%
TECHNOLOGY · Cap: $114.85B
DT
Dynatrace Holdings LLC
$42.19
-2.45%
TECHNOLOGY · Cap: $11.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 174% more annual revenue ($5.53B vs $2.02B). CDNS leads profitability with a 21.2% profit margin vs 8.1%. DT appears more attractively valued with a PEG of 0.84. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
DT
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+36.7%
Fair Value
$58.63
Current Price
$42.19
$16.44 discount
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
Conservative balance sheet, low leverage
Growing faster than its price suggests
19.4% revenue growth
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Grey zone — moderate risk
ROE of 6.2% — below average capital efficiency
Premium valuation, high expectations priced in
Earnings declined 52.6%
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 : DT
The strongest argument for DT centers on Debt/Equity, PEG Ratio, Revenue Growth. Revenue growth of 19.4% demonstrates continued momentum. PEG of 0.84 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 : DT
The primary concerns for DT are Altman Z-Score, Return on Equity, P/E Ratio. A P/E of 75.5x leaves little room for execution misses.
Key Dynamics to Monitor
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
DT is growing revenue faster at 19.4% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CDNS scores higher overall (62/100 vs 51/100), backed by strong 21.2% margins and 18.7% revenue growth. DT offers better value entry with a 36.7% margin of safety. 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.
Dynatrace Holdings LLC
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. The company is headquartered in Waltham, Massachusetts.
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