Cadence Design Systems Inc (CDNS)vsAlphabet Inc Class C (GOOG)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
GOOG
Alphabet Inc Class C
$365.76
-1.19%
COMMUNICATION SERVICES · Cap: $4.34T
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class C generates 7542% more annual revenue ($422.50B vs $5.53B). GOOG leads profitability with a 37.9% profit margin vs 21.2%. GOOG appears more attractively valued with a PEG of 1.47. GOOG earns a higher WallStSmart Score of 75/100 (B).
CDNS
Buy62
out of 100
Grade: C+
GOOG
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+0.9%
Fair Value
$369.04
Current Price
$365.76
$3.28 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
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 36.1%
Earnings expanding 82.0% YoY
Generating 10.1B in free cash flow
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Trading at 9.3x 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 : GOOG
The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% 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 : GOOG
The primary concerns for GOOG are P/E Ratio, Price/Book.
Key Dynamics to Monitor
GOOG carries more volatility with a beta of 1.27 — expect wider price swings.
GOOG is growing revenue faster at 21.8% — sustainability is the question.
GOOG generates stronger free cash flow (10.1B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GOOG scores higher overall (75/100 vs 62/100), backed by strong 37.9% margins and 21.8% 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.
Alphabet Inc Class C
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
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