Cadence Design Systems Inc (CDNS)vsThe Coca-Cola Company (KO)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
KO
The Coca-Cola Company
$79.48
+0.08%
CONSUMER DEFENSIVE · Cap: $338.86B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 791% more annual revenue ($49.28B vs $5.53B). KO leads profitability with a 27.8% profit margin vs 21.2%. CDNS appears more attractively valued with a PEG of 3.93. KO earns a higher WallStSmart Score of 65/100 (B-).
CDNS
Buy62
out of 100
Grade: C+
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-29.0%
Fair Value
$61.61
Current Price
$79.48
$17.87 premium
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 41 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 10.2x book value
Elevated debt levels
Expensive relative to growth rate
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 : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% 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 : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
CDNS profiles as a growth stock while KO 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.
KO generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
KO scores higher overall (65/100 vs 62/100), backed by strong 27.8% margins and 12.1% 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.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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