Cadence Design Systems Inc (CDNS)vsOoma Inc (OOMA)
CDNS
Cadence Design Systems Inc
$376.19
+2.48%
TECHNOLOGY · Cap: $114.85B
OOMA
Ooma Inc
$16.88
-4.36%
TECHNOLOGY · Cap: $470.64M
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 1808% more annual revenue ($5.53B vs $289.72M). CDNS leads profitability with a 21.2% profit margin vs 3.2%. OOMA appears more attractively valued with a PEG of 1.82. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
OOMA
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+28.3%
Fair Value
$15.83
Current Price
$16.88
$1.05 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
Conservative balance sheet, low leverage
Revenue surging 24.8% year-over-year
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
0.0% earnings growth
Smaller company, higher risk/reward
3.2% margin — thin
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 : OOMA
The strongest argument for OOMA centers on Debt/Equity, Revenue Growth. Revenue growth of 24.8% 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 : OOMA
The primary concerns for OOMA are PEG Ratio, EPS Growth, Market Cap. A P/E of 51.9x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
OOMA carries more volatility with a beta of 1.22 — expect wider price swings.
OOMA is growing revenue faster at 24.8% — 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
CDNS scores higher overall (62/100 vs 50/100), backed by strong 21.2% margins and 18.7% revenue growth. OOMA offers better value entry with a 28.3% margin of safety. 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.
Ooma Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company is headquartered in Sunnyvale, California.
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