WallStSmart

Cadence Design Systems Inc (CDNS)vsManhattan Associates Inc (MANH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 402% more annual revenue ($5.53B vs $1.10B). CDNS leads profitability with a 21.2% profit margin vs 19.7%. MANH appears more attractively valued with a PEG of 1.75. CDNS earns a higher WallStSmart Score of 62/100 (C+).

CDNS

Buy

62

out of 100

Grade: C+

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

MANH

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 9.0Value: 3.3Quality: 7.5
Piotroski: 4/9Altman Z: 3.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

MANHSignificantly Overvalued (-25.5%)

Margin of Safety

-25.5%

Fair Value

$113.69

Current Price

$147.64

$33.95 premium

UndervaluedFair: $113.69Overvalued

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

MANH4 strengths · Avg: 9.3/10
Return on EquityProfitability
105.6%10/10

Every $100 of equity generates 106 in profit

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

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

MANH4 concerns · Avg: 2.5/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

P/E RatioValuation
40.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
42.5x2/10

Trading at 42.5x book value

EPS GrowthGrowth
-3.5%2/10

Earnings declined 3.5%

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 : MANH

The strongest argument for MANH centers on Return on Equity, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.7% and operating margin at 23.0%.

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 : MANH

The primary concerns for MANH are PEG Ratio, P/E Ratio, Price/Book. A P/E of 40.0x leaves little room for execution misses.

Key Dynamics to Monitor

CDNS profiles as a growth stock while MANH 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.

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.

Manhattan Associates Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Manhattan Associates, Inc. develops, sells, implements, services, and maintains software solutions to manage supply chains, inventory, and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The company is headquartered in Atlanta, Georgia.

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