Cadence Design Systems Inc (CDNS)vsPhilip Morris International Inc (PM)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
PM
Philip Morris International Inc
$178.29
-1.25%
CONSUMER DEFENSIVE · Cap: $270.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 651% more annual revenue ($41.49B vs $5.53B). PM leads profitability with a 26.7% profit margin vs 21.2%. PM appears more attractively valued with a PEG of 2.41. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
PM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-60.2%
Fair Value
$109.81
Current Price
$178.29
$68.48 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
Strong operational efficiency at 36.0%
Conservative balance sheet, low leverage
Keeps 27 of every $100 in revenue as profit
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
ROE of 0.0% — below average capital efficiency
Earnings declined 9.3%
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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 26.7% and operating margin at 36.0%.
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 : PM
The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.
Key Dynamics to Monitor
CDNS profiles as a growth stock while PM 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
CDNS scores higher overall (62/100 vs 52/100), 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.
Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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