Cadence Design Systems Inc (CDNS)vsInterDigital Inc (IDCC)
CDNS
Cadence Design Systems Inc
$389.04
-1.76%
TECHNOLOGY · Cap: $108.81B
IDCC
InterDigital Inc
$297.84
-0.16%
TECHNOLOGY · Cap: $7.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 567% more annual revenue ($5.53B vs $828.92M). IDCC leads profitability with a 44.2% profit margin vs 21.2%. IDCC appears more attractively valued with a PEG of 1.32. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
IDCC
Buy56
out of 100
Grade: C
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 33 in profit
Keeps 44 of every $100 in revenue as profit
Strong operational efficiency at 40.1%
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 16.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Weak financial health signals
Revenue declined 2.4%
Earnings declined 38.0%
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 : IDCC
The strongest argument for IDCC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 44.2% and operating margin at 40.1%. PEG of 1.32 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 91.7x leaves little room for execution misses.
Bear Case : IDCC
The primary concerns for IDCC are P/E Ratio, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
CDNS profiles as a growth stock while IDCC is a declining play — different risk/reward profiles.
IDCC carries more volatility with a beta of 1.43 — 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 56/100), backed by strong 21.2% margins and 18.7% revenue growth. 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.
InterDigital Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. The company is headquartered in Wilmington, Delaware.
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