WallStSmart

Cadence Design Systems Inc (CDNS)vs8x8 Inc Common Stock (EGHT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 651% more annual revenue ($5.53B vs $735.75M). CDNS leads profitability with a 21.2% profit margin vs 0.2%. EGHT appears more attractively valued with a PEG of 0.48. CDNS earns a higher WallStSmart Score of 62/100 (C+).

CDNS

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 3.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.09

EGHT

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 3.5Value: 7.3Quality: 4.3
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

EGHTUndervalued (+89.4%)

Margin of Safety

+89.4%

Fair Value

$25.34

Current Price

$2.23

$23.11 discount

UndervaluedFair: $25.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDNS6 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Market CapQuality
$114.85B9/10

Large-cap with strong market position

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Operating MarginProfitability
29.7%8/10

Strong operational efficiency at 29.7%

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
23.0%8/10

Earnings expanding 23.0% YoY

EGHT3 strengths · Avg: 9.3/10
PEG RatioValuation
0.4810/10

Growing faster than its price suggests

EPS GrowthGrowth
83.4%10/10

Earnings expanding 83.4% YoY

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

CDNS3 concerns · Avg: 2.7/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

PEG RatioValuation
3.932/10

Expensive relative to growth rate

P/E RatioValuation
96.6x2/10

Premium valuation, high expectations priced in

EGHT4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Market CapQuality
$266.85M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

Comparative Analysis Report

WallStSmart Research

Bull 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 : EGHT

The strongest argument for EGHT centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.48 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 : EGHT

The primary concerns for EGHT are Revenue Growth, Market Cap, Profit Margin. A P/E of 189.0x leaves little room for execution misses. Debt-to-equity of 2.53 is elevated, increasing financial risk.

Key Dynamics to Monitor

CDNS profiles as a growth stock while EGHT is a value play — different risk/reward profiles.

EGHT carries more volatility with a beta of 1.82 — 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 58/100), backed by strong 21.2% margins and 18.7% revenue growth. EGHT offers better value entry with a 89.4% 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.

8x8 Inc Common Stock

TECHNOLOGY · SOFTWARE - APPLICATION · USA

8x8, Inc. provides enterprise-class voice, video, chat, contact center and contact center application programmable interface (API) software solutions for small and medium-sized businesses, medium-sized and large businesses, government agencies, and other organizations to world level. The company is headquartered in Campbell, California.

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