Cadence Design Systems Inc (CDNS)vsDexCom Inc (DXCM)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
DXCM
DexCom Inc
$72.86
+0.37%
HEALTHCARE · Cap: $28.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 15% more annual revenue ($5.53B vs $4.82B). CDNS leads profitability with a 21.2% profit margin vs 19.3%. DXCM appears more attractively valued with a PEG of 1.38. DXCM earns a higher WallStSmart Score of 72/100 (B).
CDNS
Buy62
out of 100
Grade: C+
DXCM
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+89.8%
Fair Value
$666.61
Current Price
$72.86
$593.75 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 31 in profit
Earnings expanding 92.2% YoY
Strong operational efficiency at 21.4%
15.0% revenue growth
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 9.5x book value
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 : DXCM
The strongest argument for DXCM centers on Return on Equity, EPS Growth, Operating Margin. Profitability is solid with margins at 19.3% and operating margin at 21.4%. Revenue growth of 15.0% 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 : DXCM
The primary concerns for DXCM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
CDNS profiles as a growth stock while DXCM is a mature play — different risk/reward profiles.
DXCM carries more volatility with a beta of 1.40 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
DXCM generates stronger free cash flow (449M), providing more financial flexibility.
Bottom Line
DXCM scores higher overall (72/100 vs 62/100), backed by strong 19.3% margins and 15.0% 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.
DexCom Inc
HEALTHCARE · MEDICAL DEVICES · USA
DexCom, Inc. is a company that develops, manufactures, and distributes continuous glucose monitoring (CGM) systems for diabetes management. It operates internationally with headquarters in San Diego, California, and has a manufacturing facility in Mesa, Arizona.
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