Cadence Design Systems Inc (CDNS)vsSemrush Holdings Inc (SEMR)
CDNS
Cadence Design Systems Inc
$376.19
+2.48%
TECHNOLOGY · Cap: $114.85B
SEMR
Semrush Holdings Inc
$12.00
0.00%
TECHNOLOGY · Cap: $1.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 1146% more annual revenue ($5.53B vs $443.64M). CDNS leads profitability with a 21.2% profit margin vs -4.3%. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
SEMR
Avoid22
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+2.4%
Fair Value
$12.29
Current Price
$12.00
$0.29 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
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
Smaller company, higher risk/reward
Weak financial health signals
ROE of -6.6% — below average capital efficiency
Earnings declined 42.3%
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 : SEMR
The strongest argument for SEMR centers on Debt/Equity. Revenue growth of 14.6% 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 : SEMR
The primary concerns for SEMR are Market Cap, Piotroski F-Score, Return on Equity.
Key Dynamics to Monitor
CDNS profiles as a growth stock while SEMR is a turnaround play — different risk/reward profiles.
SEMR carries more volatility with a beta of 1.50 — 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.
Bottom Line
CDNS scores higher overall (62/100 vs 22/100), backed by strong 21.2% margins and 18.7% revenue growth. Both earn "Buy" and "Avoid" 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.
Semrush Holdings Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SEMrush Holdings, Inc. develops online visibility management software as a platform of service (SaaS). The company is headquartered in Boston, Massachusetts with additional offices in Pennsylvania, Texas, Czech Republic, Cyprus, Poland, and Russia.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?