Cadence Design Systems Inc (CDNS)vsPaycom Software, Inc. (PAYC)
CDNS
Cadence Design Systems Inc
$376.19
+0.32%
TECHNOLOGY · Cap: $114.85B
PAYC
Paycom Software, Inc.
$137.62
+0.39%
TECHNOLOGY · Cap: $6.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 164% more annual revenue ($5.53B vs $2.09B). PAYC leads profitability with a 22.4% profit margin vs 21.2%. PAYC appears more attractively valued with a PEG of 0.97. PAYC earns a higher WallStSmart Score of 75/100 (B).
CDNS
Buy62
out of 100
Grade: C+
PAYC
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+68.5%
Fair Value
$376.50
Current Price
$137.62
$238.88 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
Every $100 of equity generates 58 in profit
Strong operational efficiency at 36.8%
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 22.6% YoY
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
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 : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.4% and operating margin at 36.8%. PEG of 0.97 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 : PAYC
The primary concerns for PAYC are Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
CDNS profiles as a growth stock while PAYC is a mature play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.13 — 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
PAYC scores higher overall (75/100 vs 62/100), backed by strong 22.4% 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.
Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
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