Cadence Design Systems Inc (CDNS)vsDuolingo Inc (DUOL)
CDNS
Cadence Design Systems Inc
$377.27
+2.46%
TECHNOLOGY · Cap: $104.06B
DUOL
Duolingo Inc
$119.94
-0.11%
TECHNOLOGY · Cap: $5.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 403% more annual revenue ($5.53B vs $1.10B). DUOL leads profitability with a 38.4% profit margin vs 21.2%. DUOL trades at a lower P/E of 14.3x. DUOL earns a higher WallStSmart Score of 65/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
DUOL
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+57.5%
Fair Value
$257.05
Current Price
$119.94
$137.11 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
Every $100 of equity generates 30 in profit
Keeps 38 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Revenue surging 26.5% year-over-year
Earnings expanding 23.6% YoY
Areas to Watch
Trading at 15.9x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
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 : DUOL
The strongest argument for DUOL centers on Return on Equity, Profit Margin, Debt/Equity. Profitability is solid with margins at 38.4% and operating margin at 15.4%. Revenue growth of 26.5% demonstrates continued momentum.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 87.7x leaves little room for execution misses.
Bear Case : DUOL
The primary concerns for DUOL are Piotroski F-Score.
Key Dynamics to Monitor
CDNS carries more volatility with a beta of 1.15 — expect wider price swings.
DUOL is growing revenue faster at 26.5% — 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
DUOL scores higher overall (65/100 vs 62/100), backed by strong 38.4% margins and 26.5% 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.
Duolingo Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Duolingo Inc (DUOL) is a pioneering leader in the edtech industry, celebrated for its innovative language-learning platform that has attracted more than 500 million users worldwide through an effective freemium model and enticing gamification strategies. Founded in 2011, the company employs sophisticated AI-driven personalized learning to optimize user engagement and retention across a broad spectrum of over 30 languages. With a strong commitment to making education universally accessible, Duolingo is well-positioned to capitalize on the burgeoning digital learning market, presenting compelling growth opportunities for institutional investors looking to invest in the future of educational technology.
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