Cadence Design Systems Inc (CDNS)vsRed Violet Inc (RDVT)
CDNS
Cadence Design Systems Inc
$376.19
+2.48%
TECHNOLOGY · Cap: $114.85B
RDVT
Red Violet Inc
$53.36
-6.04%
TECHNOLOGY · Cap: $747.21M
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 5777% more annual revenue ($5.53B vs $94.08M). CDNS leads profitability with a 21.2% profit margin vs 15.0%. RDVT trades at a lower P/E of 54.6x. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
RDVT
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-11.2%
Fair Value
$37.00
Current Price
$53.36
$16.36 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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Strong operational efficiency at 22.1%
17.4% revenue growth
Earnings expanding 25.0% YoY
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Premium valuation, high expectations priced in
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 : RDVT
The strongest argument for RDVT centers on Debt/Equity, Altman Z-Score, Operating Margin. Revenue growth of 17.4% 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 : RDVT
The primary concerns for RDVT are Market Cap, P/E Ratio. A P/E of 54.6x leaves little room for execution misses.
Key Dynamics to Monitor
RDVT carries more volatility with a beta of 1.85 — 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.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CDNS scores higher overall (62/100 vs 54/100), 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.
Red Violet Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Red Violet, Inc., a software and services company, specializes in proprietary technologies and applies analytical capabilities to deliver identity intelligence in the United States. The company is headquartered in Boca Raton, Florida.
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