Cadence Design Systems Inc (CDNS)vsCelestica Inc. (CLS)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
CLS
Celestica Inc.
$425.08
-3.79%
TECHNOLOGY · Cap: $41.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Celestica Inc. generates 149% more annual revenue ($13.79B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 7.0%. CLS appears more attractively valued with a PEG of 1.00. CLS earns a higher WallStSmart Score of 68/100 (B-).
CDNS
Buy62
out of 100
Grade: C+
CLS
Strong Buy68
out of 100
Grade: B-
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
Every $100 of equity generates 47 in profit
Revenue surging 52.8% year-over-year
Earnings expanding 147.3% YoY
Growing faster than its price suggests
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
7.0% margin — thin
Premium valuation, high expectations priced in
Trading at 23.3x book value
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 : CLS
The strongest argument for CLS centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 52.8% demonstrates continued momentum. PEG of 1.00 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 96.6x leaves little room for execution misses.
Bear Case : CLS
The primary concerns for CLS are Profit Margin, P/E Ratio, Price/Book. A P/E of 43.3x leaves little room for execution misses.
Key Dynamics to Monitor
CDNS profiles as a growth stock while CLS is a hypergrowth play — different risk/reward profiles.
CLS carries more volatility with a beta of 1.48 — expect wider price swings.
CLS is growing revenue faster at 52.8% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
CLS scores higher overall (68/100 vs 62/100) and 52.8% 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.
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.
Celestica Inc.
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Celestica Inc. provides hardware platforms and supply chain solutions in North America, Europe, and Asia. The company is headquartered in Toronto, Canada.
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