Cadence Design Systems Inc (CDNS)vsInfosys Ltd ADR (INFY)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
INFY
Infosys Ltd ADR
$12.40
-1.35%
TECHNOLOGY · Cap: $52.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Infosys Ltd ADR generates 265% more annual revenue ($20.16B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 16.4%. INFY appears more attractively valued with a PEG of 2.38. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
INFY
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+84.3%
Fair Value
$100.25
Current Price
$12.40
$87.85 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
Every $100 of equity generates 34 in profit
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Attractively priced relative to earnings
Strong operational efficiency at 20.9%
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 10.2x 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 : INFY
The strongest argument for INFY centers on Return on Equity, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 16.4% and operating margin at 20.9%.
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 : INFY
The primary concerns for INFY are PEG Ratio, Price/Book.
Key Dynamics to Monitor
CDNS profiles as a growth stock while INFY is a mature play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
INFY generates stronger free cash flow (833M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 58/100), backed by strong 21.2% margins and 18.7% revenue growth. INFY offers better value entry with a 84.3% 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.
Infosys Ltd ADR
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Infosys Limited offers next generation digital consulting, technology, outsourcing and services in North America, Europe, India and internationally. The company is headquartered in Bengaluru, India.
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