Cadence Design Systems Inc (CDNS)vsTexas Instruments Incorporated (TXN)
CDNS
Cadence Design Systems Inc
$376.19
+4.80%
TECHNOLOGY · Cap: $114.85B
TXN
Texas Instruments Incorporated
$285.06
+2.05%
TECHNOLOGY · Cap: $280.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Texas Instruments Incorporated generates 234% more annual revenue ($18.44B vs $5.53B). TXN leads profitability with a 29.1% profit margin vs 21.2%. TXN appears more attractively valued with a PEG of 1.40. TXN earns a higher WallStSmart Score of 74/100 (B).
CDNS
Buy62
out of 100
Grade: C+
TXN
Strong Buy74
out of 100
Grade: B
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
Mega-cap, among the largest globally
Every $100 of equity generates 32 in profit
Strong operational efficiency at 37.8%
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
18.6% revenue growth
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 15.5x book value
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, 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 : TXN
The strongest argument for TXN centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.1% and operating margin at 37.8%. Revenue growth of 18.6% 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 : TXN
The primary concerns for TXN are Price/Book, P/E Ratio. A P/E of 52.7x leaves little room for execution misses.
Key Dynamics to Monitor
TXN carries more volatility with a beta of 1.30 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
TXN generates stronger free cash flow (844M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TXN scores higher overall (74/100 vs 62/100), backed by strong 29.1% margins and 18.6% 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.
Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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