Cadence Design Systems Inc (CDNS)vsTrane Technologies plc (TT)
CDNS
Cadence Design Systems Inc
$376.19
-0.57%
TECHNOLOGY · Cap: $108.81B
TT
Trane Technologies plc
$463.76
+2.30%
INDUSTRIALS · Cap: $104.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Trane Technologies plc generates 291% more annual revenue ($21.60B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 13.4%. TT appears more attractively valued with a PEG of 2.01. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
TT
Buy52
out of 100
Grade: C-
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
Every $100 of equity generates 34 in profit
Large-cap with strong market position
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
Premium valuation, high expectations priced in
Trading at 11.9x book value
Earnings declined 2.1%
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 : TT
The strongest argument for TT centers on Return on Equity, Market Cap.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 91.7x leaves little room for execution misses.
Bear Case : TT
The primary concerns for TT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
CDNS profiles as a growth stock while TT is a value play — different risk/reward profiles.
TT carries more volatility with a beta of 1.21 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
TT generates stronger free cash flow (542M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 52/100), backed by strong 21.2% margins and 18.7% revenue growth. 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.
Trane Technologies plc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Trane Technologies plc is an American Irish domiciled diversified industrial manufacturing company. It is headquartered near Dublin, Ireland.
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