Cadence Design Systems Inc (CDNS)vsSony Group Corp (SONY)
CDNS
Cadence Design Systems Inc
$289.37
+1.55%
TECHNOLOGY · Cap: $79.69B
SONY
Sony Group Corp
$23.90
+1.62%
TECHNOLOGY · Cap: $143.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Sony Group Corp generates 217382% more annual revenue ($12.70T vs $5.84B). CDNS leads profitability with a 23.6% profit margin vs -1.8%. SONY appears more attractively valued with a PEG of 1.67. CDNS earns a higher WallStSmart Score of 68/100 (B-).
CDNS
Strong Buy68
out of 100
Grade: B-
SONY
Buy59
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 125.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Generating 59.6B in free cash flow
Large-cap with strong market position
Conservative balance sheet, low leverage
Reasonable price relative to book value
Earnings expanding 47.6% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 11.6x book value
Premium valuation, high expectations priced in
Expensive relative to growth rate
ROE of -2.9% — below average capital efficiency
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : CDNS
The strongest argument for CDNS centers on EPS Growth, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.6% and operating margin at 28.6%. Revenue growth of 24.2% demonstrates continued momentum.
Bull Case : SONY
The strongest argument for SONY centers on Free Cash Flow, Market Cap, Debt/Equity.
Bear Case : CDNS
The primary concerns for CDNS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 56.5x leaves little room for execution misses.
Bear Case : SONY
The primary concerns for SONY are PEG Ratio, Return on Equity, Profit Margin.
Key Dynamics to Monitor
CDNS profiles as a growth stock while SONY is a turnaround play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.14 — expect wider price swings.
CDNS is growing revenue faster at 24.2% — sustainability is the question.
SONY generates stronger free cash flow (59.6B), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (68/100 vs 59/100), backed by strong 23.6% margins and 24.2% revenue growth. Both earn "Strong 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.
Sony Group Corp
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sony Group Corporation designs, develops, produces and sells electronic equipment, instruments and devices for the consumer, professional and industrial markets worldwide. The company is headquartered in Tokyo, Japan.
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