Cadence Design Systems Inc (CDNS)vsKLA Corporation (KLAC)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
KLAC
KLA Corporation
$1,929.20
+9.27%
TECHNOLOGY · Cap: $267.16B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 137% more annual revenue ($13.10B vs $5.53B). KLAC leads profitability with a 35.7% profit margin vs 21.2%. KLAC appears more attractively valued with a PEG of 2.04. KLAC earns a higher WallStSmart Score of 66/100 (B-).
CDNS
Buy62
out of 100
Grade: C+
KLAC
Strong Buy66
out of 100
Grade: B-
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 80 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.2%
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
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 43.2x 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 : KLAC
The strongest argument for KLAC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.7% and operating margin at 41.2%. Revenue growth of 11.5% 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 : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 57.9x leaves little room for execution misses.
Key Dynamics to Monitor
CDNS profiles as a growth stock while KLAC is a mature play — different risk/reward profiles.
KLAC carries more volatility with a beta of 1.50 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
KLAC generates stronger free cash flow (622M), providing more financial flexibility.
Bottom Line
KLAC scores higher overall (66/100 vs 62/100), backed by strong 35.7% margins and 11.5% 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.
KLA Corporation
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
KLA Corporation is a capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit (IC) and packaging production, from research and development to final volume manufacturing.
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