Affirm Holdings Inc (AFRM)vsCadence Design Systems Inc (CDNS)
AFRM
Affirm Holdings Inc
$68.70
-0.53%
FINANCIAL SERVICES · Cap: $24.45B
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 39% more annual revenue ($5.53B vs $3.97B). CDNS leads profitability with a 21.2% profit margin vs 9.6%. AFRM appears more attractively valued with a PEG of 0.72. AFRM earns a higher WallStSmart Score of 63/100 (C+).
AFRM
Buy63
out of 100
Grade: C+
CDNS
Buy62
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 32.6% year-over-year
Earnings expanding 3529.0% YoY
Growing faster than its price suggests
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
Distress zone — elevated risk
Elevated debt levels
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AFRM
The strongest argument for AFRM centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 32.6% demonstrates continued momentum. PEG of 0.72 suggests the stock is reasonably priced for its growth.
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 : AFRM
The primary concerns for AFRM are P/E Ratio, Altman Z-Score, Debt/Equity. A P/E of 66.4x leaves little room for execution misses. Debt-to-equity of 2.36 is elevated, increasing financial risk.
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
AFRM profiles as a hypergrowth stock while CDNS is a growth play — different risk/reward profiles.
AFRM carries more volatility with a beta of 3.72 — expect wider price swings.
AFRM is growing revenue faster at 32.6% — sustainability is the question.
AFRM generates stronger free cash flow (325M), providing more financial flexibility.
Bottom Line
AFRM scores higher overall (63/100 vs 62/100) and 32.6% 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.
Affirm Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Affirm Holdings, Inc. operates a platform for digital and mobile commerce in the United States and Canada. The company is headquartered in San Francisco, California.
Visit Website →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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