Cadence Design Systems Inc (CDNS)vsPTC Inc (PTC)
CDNS
Cadence Design Systems Inc
$376.19
+2.48%
TECHNOLOGY · Cap: $114.85B
PTC
PTC Inc
$137.00
-1.29%
TECHNOLOGY · Cap: $13.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 84% more annual revenue ($5.53B vs $3.00B). PTC leads profitability with a 41.6% profit margin vs 21.2%. PTC appears more attractively valued with a PEG of 0.93. PTC earns a higher WallStSmart Score of 82/100 (A-).
CDNS
Buy62
out of 100
Grade: C+
PTC
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-68.9%
Fair Value
$92.13
Current Price
$137.00
$44.87 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
Attractively priced relative to earnings
Every $100 of equity generates 32 in profit
Keeps 42 of every $100 in revenue as profit
Strong operational efficiency at 41.6%
Earnings expanding 268.9% YoY
Growing faster than its price suggests
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
No major concerns identified
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 : PTC
The strongest argument for PTC centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 41.6% and operating margin at 41.6%. Revenue growth of 21.7% 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 : PTC
No major red flags identified for PTC, but monitor valuation.
Key Dynamics to Monitor
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
PTC is growing revenue faster at 21.7% — sustainability is the question.
PTC generates stronger free cash flow (318M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PTC scores higher overall (82/100 vs 62/100), backed by strong 41.6% margins and 21.7% revenue growth. Both earn "Exceptional 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.
PTC Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
PTC Inc. is an American computer software and services company founded in 1985 and headquartered in Boston, Massachusetts.
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