Analog Devices Inc (ADI)vsCadence Design Systems Inc (CDNS)
ADI
Analog Devices Inc
$401.39
+0.18%
TECHNOLOGY · Cap: $206.14B
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Analog Devices Inc generates 130% more annual revenue ($12.74B vs $5.53B). ADI leads profitability with a 26.0% profit margin vs 21.2%. ADI appears more attractively valued with a PEG of 0.88. ADI earns a higher WallStSmart Score of 73/100 (B).
ADI
Strong Buy73
out of 100
Grade: B
CDNS
Buy62
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.1%
Revenue surging 37.2% year-over-year
Earnings expanding 110.5% YoY
Keeps 26 of every $100 in revenue as profit
Conservative balance sheet, low leverage
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
Premium valuation, high expectations priced in
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ADI
The strongest argument for ADI centers on Market Cap, Operating Margin, Revenue Growth. Profitability is solid with margins at 26.0% and operating margin at 38.1%. Revenue growth of 37.2% 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 : ADI
The primary concerns for ADI are P/E Ratio. A P/E of 62.9x leaves little room for execution misses.
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
ADI carries more volatility with a beta of 1.19 — expect wider price swings.
ADI is growing revenue faster at 37.2% — sustainability is the question.
ADI generates stronger free cash flow (734M), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADI scores higher overall (73/100 vs 62/100), backed by strong 26.0% margins and 37.2% 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.
Analog Devices Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Analog Devices, Inc. (ADI), also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.
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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