Cadence Design Systems Inc (CDNS)vsCNH Industrial N.V. (CNH)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
CNH
CNH Industrial N.V.
$10.75
-0.92%
INDUSTRIALS · Cap: $12.54B
Smart Verdict
WallStSmart Research — data-driven comparison
CNH Industrial N.V. generates 227% more annual revenue ($18.09B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 2.1%. CNH appears more attractively valued with a PEG of 0.58. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
CNH
Buy51
out of 100
Grade: C-
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
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Grey zone — moderate risk
ROE of 5.0% — below average capital efficiency
2.1% margin — thin
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 : CNH
The strongest argument for CNH centers on PEG Ratio, Price/Book. PEG of 0.58 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 : CNH
The primary concerns for CNH are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
CDNS profiles as a growth stock while CNH is a value play — different risk/reward profiles.
CNH carries more volatility with a beta of 1.25 — 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
CDNS scores higher overall (62/100 vs 51/100), backed by strong 21.2% margins and 18.7% 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.
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.
CNH Industrial N.V.
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific. The company is headquartered in Basildon, the United Kingdom.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?