Cadence Design Systems Inc (CDNS)vsOracle Corporation (ORCL)
CDNS
Cadence Design Systems Inc
$377.73
+0.64%
TECHNOLOGY · Cap: $104.06B
ORCL
Oracle Corporation
$142.72
-2.21%
TECHNOLOGY · Cap: $427.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Oracle Corporation generates 1118% more annual revenue ($67.36B vs $5.53B). ORCL leads profitability with a 25.4% profit margin vs 21.2%. ORCL appears more attractively valued with a PEG of 0.86. ORCL earns a higher WallStSmart Score of 76/100 (B+).
CDNS
Buy62
out of 100
Grade: C+
ORCL
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-41.7%
Fair Value
$104.84
Current Price
$142.72
$37.88 premium
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
Every $100 of equity generates 40 in profit
Strong operational efficiency at 36.2%
Keeps 25 of every $100 in revenue as profit
Growing faster than its price suggests
Revenue surging 20.6% year-over-year
Areas to Watch
Trading at 15.9x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Trading at 12.2x book value
Weak financial health signals
Negative free cash flow — burning cash
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 : ORCL
The strongest argument for ORCL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 25.4% and operating margin at 36.2%. Revenue growth of 20.6% demonstrates continued momentum.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 87.7x leaves little room for execution misses.
Bear Case : ORCL
The primary concerns for ORCL are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 3.63 is elevated, increasing financial risk.
Key Dynamics to Monitor
ORCL carries more volatility with a beta of 1.66 — expect wider price swings.
ORCL is growing revenue faster at 20.6% — 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
ORCL scores higher overall (76/100 vs 62/100), backed by strong 25.4% margins and 20.6% 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.
Oracle Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.
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