Cadence Design Systems Inc (CDNS)vsSAP SE ADR (SAP)
CDNS
Cadence Design Systems Inc
$389.04
-2.57%
TECHNOLOGY · Cap: $108.81B
SAP
SAP SE ADR
$149.51
-1.27%
TECHNOLOGY · Cap: $192.92B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 575% more annual revenue ($37.34B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 19.6%. SAP appears more attractively valued with a PEG of 1.44. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
SAP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-34.8%
Fair Value
$145.80
Current Price
$149.51
$3.71 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
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Generating 3.3B in free cash flow
Areas to Watch
Trading at 16.4x 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 : SAP
The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 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 91.7x leaves little room for execution misses.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
CDNS profiles as a growth stock while SAP is a mature play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.15 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 59/100), 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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