Cadence Design Systems Inc (CDNS)vsFair Isaac Corporation (FICO)
CDNS
Cadence Design Systems Inc
$376.19
+0.32%
TECHNOLOGY · Cap: $114.85B
FICO
Fair Isaac Corporation
$1,137.33
-2.52%
TECHNOLOGY · Cap: $27.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 145% more annual revenue ($5.53B vs $2.26B). FICO leads profitability with a 33.7% profit margin vs 21.2%. FICO appears more attractively valued with a PEG of 0.79. FICO earns a higher WallStSmart Score of 79/100 (B+).
CDNS
Buy62
out of 100
Grade: C+
FICO
Strong Buy79
out of 100
Grade: B+
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 36 in profit
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 58.2%
Revenue surging 38.7% year-over-year
Earnings expanding 69.0% YoY
Conservative balance sheet, low leverage
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
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 : FICO
The strongest argument for FICO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 58.2%. Revenue growth of 38.7% 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 : FICO
The primary concerns for FICO are P/E Ratio.
Key Dynamics to Monitor
FICO carries more volatility with a beta of 1.28 — expect wider price swings.
FICO is growing revenue faster at 38.7% — 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
FICO scores higher overall (79/100 vs 62/100), backed by strong 33.7% margins and 38.7% 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.
Fair Isaac Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Fair Isaac Corporation develops data management, software and analytics products and services that enable companies to automate, improve and connect decisions in North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. The company is headquartered in San Jose, California.
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