Cadence Design Systems Inc (CDNS)vsTyler Technologies Inc (TYL)
CDNS
Cadence Design Systems Inc
$389.04
-2.57%
TECHNOLOGY · Cap: $108.81B
TYL
Tyler Technologies Inc
$312.07
+1.27%
TECHNOLOGY · Cap: $12.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 132% more annual revenue ($5.53B vs $2.38B). CDNS leads profitability with a 21.2% profit margin vs 13.3%. TYL appears more attractively valued with a PEG of 1.45. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
TYL
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+0.4%
Fair Value
$340.69
Current Price
$312.07
$28.62 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
Conservative balance sheet, low leverage
Areas to Watch
Trading at 16.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.2% earnings growth
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 : TYL
The strongest argument for TYL centers on Debt/Equity. PEG of 1.45 suggests the stock is reasonably priced for its growth.
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 : TYL
The primary concerns for TYL are EPS Growth, P/E Ratio. A P/E of 41.3x leaves little room for execution misses.
Key Dynamics to Monitor
CDNS profiles as a growth stock while TYL is a value play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.15 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 53/100), 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.
Tyler Technologies Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Tyler Technologies, Inc., based in Plano, Texas, is the largest provider of software to the United States public sector.
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