WallStSmart

Cadence Design Systems Inc (CDNS)vsIntuitive Surgical Inc (ISRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Intuitive Surgical Inc generates 91% more annual revenue ($10.58B vs $5.53B). ISRG leads profitability with a 28.1% profit margin vs 21.2%. ISRG appears more attractively valued with a PEG of 2.16. ISRG earns a higher WallStSmart Score of 64/100 (C+).

CDNS

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 3.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.09

ISRG

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 9.0Value: 6.0Quality: 7.8
Piotroski: 4/9Altman Z: 5.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

ISRGUndervalued (+77.9%)

Margin of Safety

+77.9%

Fair Value

$1896.32

Current Price

$422.06

$1474.26 discount

UndervaluedFair: $1896.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDNS6 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Market CapQuality
$114.85B9/10

Large-cap with strong market position

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Operating MarginProfitability
29.7%8/10

Strong operational efficiency at 29.7%

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
23.0%8/10

Earnings expanding 23.0% YoY

ISRG5 strengths · Avg: 9.2/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Altman Z-ScoreHealth
5.8910/10

Safe zone — low bankruptcy risk

Market CapQuality
$142.48B9/10

Large-cap with strong market position

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

CDNS3 concerns · Avg: 2.7/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

PEG RatioValuation
3.932/10

Expensive relative to growth rate

P/E RatioValuation
96.6x2/10

Premium valuation, high expectations priced in

ISRG3 concerns · Avg: 3.3/10
PEG RatioValuation
2.164/10

Expensive relative to growth rate

Price/BookValuation
8.6x4/10

Trading at 8.6x book value

P/E RatioValuation
48.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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 : ISRG

The strongest argument for ISRG centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 28.1% and operating margin at 30.9%. Revenue growth of 23.0% 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 : ISRG

The primary concerns for ISRG are PEG Ratio, Price/Book, P/E Ratio. A P/E of 48.8x leaves little room for execution misses.

Key Dynamics to Monitor

ISRG carries more volatility with a beta of 1.51 — expect wider price swings.

ISRG is growing revenue faster at 23.0% — sustainability is the question.

ISRG generates stronger free cash flow (809M), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ISRG scores higher overall (64/100 vs 62/100), backed by strong 28.1% margins and 23.0% 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.

Intuitive Surgical Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Intuitive Surgical, Inc. is an American corporation that develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the da Vinci Surgical System.

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