Cadence Design Systems Inc (CDNS)vsAT&T Inc. (T)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
T
AT&T Inc.
$22.75
-1.10%
COMMUNICATION SERVICES · Cap: $171.21B
Smart Verdict
WallStSmart Research — data-driven comparison
AT&T Inc. generates 2189% more annual revenue ($126.53B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 16.9%. T appears more attractively valued with a PEG of 1.71. T earns a higher WallStSmart Score of 64/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
T
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+14.4%
Fair Value
$27.51
Current Price
$22.75
$4.76 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
Attractively priced relative to earnings
Reasonable price relative to book value
Large-cap with strong market position
Strong operational efficiency at 22.7%
Generating 2.7B in free cash flow
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
2.9% revenue growth
Elevated debt levels
Earnings declined 11.3%
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 : T
The strongest argument for T centers on P/E Ratio, Price/Book, Market Cap. Profitability is solid with margins at 16.9% and operating margin at 22.7%.
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 : T
The primary concerns for T are PEG Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
CDNS profiles as a growth stock while T is a value play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
T generates stronger free cash flow (2.7B), providing more financial flexibility.
Bottom Line
T scores higher overall (64/100 vs 62/100), backed by strong 16.9% margins. 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.
AT&T Inc.
COMMUNICATION SERVICES · TELECOM SERVICES · USA
AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.
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