Cadence Design Systems Inc (CDNS)vsHubSpot Inc (HUBS)
CDNS
Cadence Design Systems Inc
$376.19
+0.32%
TECHNOLOGY · Cap: $114.85B
HUBS
HubSpot Inc
$212.64
-3.51%
TECHNOLOGY · Cap: $9.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 68% more annual revenue ($5.53B vs $3.30B). CDNS leads profitability with a 21.2% profit margin vs 3.0%. HUBS appears more attractively valued with a PEG of 0.30. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
HUBS
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+59.7%
Fair Value
$519.57
Current Price
$212.64
$306.93 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
Growing faster than its price suggests
Earnings expanding 968.0% YoY
Conservative balance sheet, low leverage
Revenue surging 23.4% year-over-year
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 5.0% — below average capital efficiency
3.0% margin — thin
Operating margin of 3.3%
Weak financial health signals
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 : HUBS
The strongest argument for HUBS centers on PEG Ratio, EPS Growth, Debt/Equity. Revenue growth of 23.4% demonstrates continued momentum. PEG of 0.30 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 : HUBS
The primary concerns for HUBS are Return on Equity, Profit Margin, Operating Margin. A P/E of 98.9x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
HUBS carries more volatility with a beta of 1.20 — expect wider price swings.
HUBS is growing revenue faster at 23.4% — 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 59/100), backed by strong 21.2% margins and 18.7% revenue growth. HUBS offers better value entry with a 59.7% 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.
HubSpot Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
HubSpot, Inc. provides a cloud-based customer relationship management (CRM) platform for companies in the Americas, Europe, and Asia Pacific. The company is headquartered in Cambridge, Massachusetts.
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