Cadence Design Systems Inc (CDNS)vsMagnite Inc (MGNI)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
MGNI
Magnite Inc
$14.68
-1.21%
COMMUNICATION SERVICES · Cap: $2.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 665% more annual revenue ($5.53B vs $722.55M). MGNI leads profitability with a 22.0% profit margin vs 21.2%. MGNI appears more attractively valued with a PEG of 0.09. MGNI earns a higher WallStSmart Score of 70/100 (B-).
CDNS
Buy62
out of 100
Grade: C+
MGNI
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+49.4%
Fair Value
$23.30
Current Price
$14.68
$8.62 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
Growing faster than its price suggests
Earnings expanding 230.0% YoY
Conservative balance sheet, low leverage
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Operating margin of 4.7%
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : MGNI
The strongest argument for MGNI centers on PEG Ratio, EPS Growth, Debt/Equity. Profitability is solid with margins at 22.0% and operating margin at 4.7%. PEG of 0.09 suggests the stock is reasonably priced for its growth.
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 : MGNI
The primary concerns for MGNI are Operating Margin, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
CDNS profiles as a growth stock while MGNI is a mature play — different risk/reward profiles.
MGNI carries more volatility with a beta of 2.32 — 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
MGNI scores higher overall (70/100 vs 62/100), backed by strong 22.0% margins. 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.
Magnite Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Magnite, Inc. operates an independent sales advertising platform in the United States and internationally. The company is headquartered in Los Angeles, California.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?