Cadence Design Systems Inc (CDNS)vsPepsiCo Inc (PEP)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
PEP
PepsiCo Inc
$141.92
-0.87%
CONSUMER DEFENSIVE · Cap: $194.11B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 1626% more annual revenue ($95.45B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.52. PEP earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
PEP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-2.5%
Fair Value
$138.40
Current Price
$141.92
$3.52 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
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 27.8% 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
Trading at 9.1x 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 : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, EPS 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 : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
CDNS profiles as a growth stock while PEP is a value 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
CDNS scores higher overall (62/100 vs 62/100), backed by strong 21.2% margins and 18.7% revenue growth. 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.
PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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