Cadence Design Systems Inc (CDNS)vsMorgan Stanley (MS)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
MS
Morgan Stanley
$211.93
+0.15%
FINANCIAL SERVICES · Cap: $339.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 1224% more annual revenue ($73.17B vs $5.53B). MS leads profitability with a 24.7% profit margin vs 21.2%. MS appears more attractively valued with a PEG of 2.54. MS earns a higher WallStSmart Score of 71/100 (B).
CDNS
Buy62
out of 100
Grade: C+
MS
Strong Buy71
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
Strong operational efficiency at 40.6%
Keeps 25 of every $100 in revenue as profit
16.3% revenue growth
Earnings expanding 31.9% YoY
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
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 40.6%. Revenue growth of 16.3% 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 : MS
The primary concerns for MS are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 3.45 is elevated, increasing financial risk.
Key Dynamics to Monitor
MS carries more volatility with a beta of 1.21 — 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.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MS scores higher overall (71/100 vs 62/100), backed by strong 24.7% margins and 16.3% 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.
Morgan Stanley
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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