Cadence Design Systems Inc (CDNS)vsElastic NV (ESTC)
CDNS
Cadence Design Systems Inc
$389.04
-2.57%
TECHNOLOGY · Cap: $108.81B
ESTC
Elastic NV
$58.73
-5.07%
TECHNOLOGY · Cap: $6.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 218% more annual revenue ($5.53B vs $1.74B). CDNS leads profitability with a 21.2% profit margin vs 21.1%. CDNS appears more attractively valued with a PEG of 3.66. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
ESTC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+64.1%
Fair Value
$172.16
Current Price
$58.73
$113.43 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
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
16.0% revenue growth
Areas to Watch
Trading at 16.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.0% earnings growth
Weak financial health signals
Expensive relative to growth rate
ROE of -10.7% — below average capital efficiency
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 : ESTC
The strongest argument for ESTC centers on Profit Margin, P/E Ratio, Revenue Growth. Profitability is solid with margins at 21.1% and operating margin at -3.5%. Revenue growth of 16.0% 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 : ESTC
The primary concerns for ESTC are EPS Growth, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
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.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CDNS scores higher overall (62/100 vs 55/100), backed by strong 21.2% margins and 18.7% revenue growth. ESTC offers better value entry with a 64.1% 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.
Elastic NV
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Elastic NV, a search company, offers technology that enables users to search through structured and unstructured data for a variety of consumer and business applications. The company is headquartered in Mountain View, California.
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