Cadence Design Systems Inc (CDNS)vsSynopsys Inc (SNPS)
CDNS
Cadence Design Systems Inc
$364.20
-1.59%
TECHNOLOGY · Cap: $97.79B
SNPS
Synopsys Inc
$516.19
-1.49%
TECHNOLOGY · Cap: $97.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Synopsys Inc generates 45% more annual revenue ($8.01B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 13.8%. SNPS appears more attractively valued with a PEG of 3.41. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
SNPS
Hold47
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 29.7%
18.7% revenue growth
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Areas to Watch
Trading at 15.1x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
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, Return on Equity. Profitability is solid with margins at 21.2% and operating margin at 29.7%. Revenue growth of 18.7% demonstrates continued momentum.
Bull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 82.7x leaves little room for execution misses.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 78.1x leaves little room for execution misses.
Key Dynamics to Monitor
SNPS carries more volatility with a beta of 1.25 — expect wider price swings.
SNPS is growing revenue faster at 65.5% — sustainability is the question.
SNPS generates stronger free cash flow (822M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CDNS scores higher overall (62/100 vs 47/100), backed by strong 21.2% margins and 18.7% revenue growth. Both earn "Buy" and "Hold" 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.
Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
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