Cadence Design Systems Inc (CDNS)vsNVIDIA Corporation (NVDA)
CDNS
Cadence Design Systems Inc
$289.37
+1.55%
TECHNOLOGY · Cap: $79.69B
NVDA
NVIDIA Corporation
$218.29
-0.03%
TECHNOLOGY · Cap: $5.27T
Smart Verdict
WallStSmart Research — data-driven comparison
NVIDIA Corporation generates 5090% more annual revenue ($302.97B vs $5.84B). NVDA leads profitability with a 63.7% profit margin vs 23.6%. NVDA appears more attractively valued with a PEG of 0.56. NVDA earns a higher WallStSmart Score of 80/100 (A-).
CDNS
Strong Buy68
out of 100
Grade: B-
NVDA
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-52.6%
Fair Value
$143.03
Current Price
$218.29
$75.26 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 125.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Mega-cap, among the largest globally
Every $100 of equity generates 84 in profit
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 66.2%
Revenue surging 105.9% year-over-year
Earnings expanding 127.8% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 11.6x book value
Premium valuation, high expectations priced in
Moderate valuation
Weak financial health signals
Trading at 23.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CDNS
The strongest argument for CDNS centers on EPS Growth, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.6% and operating margin at 28.6%. Revenue growth of 24.2% demonstrates continued momentum.
Bull Case : NVDA
The strongest argument for NVDA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 63.7% and operating margin at 66.2%. Revenue growth of 105.9% demonstrates continued momentum.
Bear Case : CDNS
The primary concerns for CDNS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 56.5x leaves little room for execution misses.
Bear Case : NVDA
The primary concerns for NVDA are P/E Ratio, Piotroski F-Score, Price/Book.
Key Dynamics to Monitor
NVDA carries more volatility with a beta of 2.22 — expect wider price swings.
NVDA is growing revenue faster at 105.9% — sustainability is the question.
NVDA generates stronger free cash flow (21.4B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NVDA scores higher overall (80/100 vs 68/100), backed by strong 63.7% margins and 105.9% revenue growth. Both earn "Exceptional Buy" and "Strong 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.
NVIDIA Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?