Cadence Design Systems Inc (CDNS)vsPayPal Holdings Inc (PYPL)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
PYPL
PayPal Holdings Inc
$41.29
+0.48%
FINANCIAL SERVICES · Cap: $38.60B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 510% more annual revenue ($33.73B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 15.0%. PYPL appears more attractively valued with a PEG of 0.79. PYPL earns a higher WallStSmart Score of 72/100 (B).
CDNS
Buy62
out of 100
Grade: C+
PYPL
Strong Buy72
out of 100
Grade: B
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 25 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Earnings declined 6.2%
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 : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.79 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 : PYPL
The primary concerns for PYPL are Altman Z-Score, EPS Growth.
Key Dynamics to Monitor
CDNS profiles as a growth stock while PYPL is a value play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.40 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
PYPL generates stronger free cash flow (911M), providing more financial flexibility.
Bottom Line
PYPL scores higher overall (72/100 vs 62/100). 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.
PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
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