ADEIA CORP (ADEA)vsCadence Design Systems Inc (CDNS)
ADEA
ADEIA CORP
$28.98
-10.44%
TECHNOLOGY · Cap: $2.95B
CDNS
Cadence Design Systems Inc
$376.19
+2.48%
TECHNOLOGY · Cap: $114.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 1101% more annual revenue ($5.53B vs $460.49M). ADEA leads profitability with a 26.5% profit margin vs 21.2%. ADEA appears more attractively valued with a PEG of 1.51. ADEA earns a higher WallStSmart Score of 72/100 (B).
ADEA
Strong Buy72
out of 100
Grade: B
CDNS
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.9%
Fair Value
$35.84
Current Price
$28.98
$6.86 discount
Intrinsic value data unavailable for CDNS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 39.0%
Earnings expanding 100.0% YoY
Conservative balance sheet, low leverage
Every $100 of equity generates 29 in profit
Keeps 27 of every $100 in revenue as profit
19.5% revenue growth
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
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ADEA
The strongest argument for ADEA centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 26.5% and operating margin at 39.0%. Revenue growth of 19.5% demonstrates continued momentum.
Bull 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.
Bear Case : ADEA
The primary concerns for ADEA are PEG Ratio, Altman Z-Score.
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.
Key Dynamics to Monitor
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
ADEA is growing revenue faster at 19.5% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADEA scores higher overall (72/100 vs 62/100), backed by strong 26.5% margins and 19.5% 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.
ADEIA CORP
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Adeia Inc., is a global consumer and entertainment products/solutions licensing company. The company is headquartered in San Jose, California.
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.
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