Cadence Design Systems Inc (CDNS)vsSea Ltd (SE)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
SE
Sea Ltd
$86.56
-6.00%
CONSUMER CYCLICAL · Cap: $57.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Sea Ltd generates 356% more annual revenue ($25.19B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 6.4%. SE appears more attractively valued with a PEG of 1.36. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
SE
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+53.1%
Fair Value
$243.96
Current Price
$86.56
$157.40 discount
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
Revenue surging 46.6% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
3.1% earnings growth
6.4% margin — thin
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 : SE
The strongest argument for SE centers on Revenue Growth, Market Cap, Debt/Equity. Revenue growth of 46.6% demonstrates continued momentum. PEG of 1.36 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 : SE
The primary concerns for SE are P/E Ratio, EPS Growth, Profit Margin.
Key Dynamics to Monitor
CDNS profiles as a growth stock while SE is a hypergrowth play — different risk/reward profiles.
SE carries more volatility with a beta of 1.57 — expect wider price swings.
SE is growing revenue faster at 46.6% — sustainability is the question.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CDNS scores higher overall (62/100 vs 58/100), backed by strong 21.2% margins and 18.7% revenue growth. SE offers better value entry with a 53.1% margin of safety. 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.
Sea Ltd
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.
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