WallStSmart

Bentley Systems Inc (BSY)vsCadence Design Systems Inc (CDNS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 255% more annual revenue ($5.53B vs $1.56B). CDNS leads profitability with a 21.2% profit margin vs 18.1%. BSY appears more attractively valued with a PEG of 1.36. BSY earns a higher WallStSmart Score of 64/100 (C+).

BSY

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.0Quality: 4.5
Piotroski: 7/9Altman Z: 0.90

CDNS

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 3.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BSYUndervalued (+22.0%)

Margin of Safety

+22.0%

Fair Value

$43.48

Current Price

$32.93

$10.55 discount

UndervaluedFair: $43.48Overvalued

Intrinsic value data unavailable for CDNS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BSY2 strengths · Avg: 9.5/10
Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Return on EquityProfitability
23.0%9/10

Every $100 of equity generates 23 in profit

CDNS6 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Market CapQuality
$114.85B9/10

Large-cap with strong market position

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Operating MarginProfitability
29.7%8/10

Strong operational efficiency at 29.7%

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
23.0%8/10

Earnings expanding 23.0% YoY

Areas to Watch

BSY3 concerns · Avg: 3.3/10
P/E RatioValuation
35.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Altman Z-ScoreHealth
0.902/10

Distress zone — elevated risk

CDNS3 concerns · Avg: 2.7/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

PEG RatioValuation
3.932/10

Expensive relative to growth rate

P/E RatioValuation
96.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BSY

The strongest argument for BSY centers on Operating Margin, Return on Equity. Profitability is solid with margins at 18.1% and operating margin at 30.6%. Revenue growth of 14.5% 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 : BSY

The primary concerns for BSY are P/E Ratio, Price/Book, 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

BSY profiles as a mature stock while CDNS is a growth play — different risk/reward profiles.

CDNS carries more volatility with a beta of 1.13 — 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

BSY scores higher overall (64/100 vs 62/100), backed by strong 18.1% margins and 14.5% 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.

Bentley Systems Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Bentley Systems, Incorporated, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. The company is headquartered in Exton, Pennsylvania.

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.

Want to dig deeper into these stocks?