Cadence Design Systems Inc (CDNS)vsSalesforce.com Inc (CRM)
CDNS
Cadence Design Systems Inc
$389.04
-2.57%
TECHNOLOGY · Cap: $108.81B
CRM
Salesforce.com Inc
$150.12
+2.20%
TECHNOLOGY · Cap: $134.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 675% more annual revenue ($42.83B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 18.7%. CRM appears more attractively valued with a PEG of 0.79. CRM earns a higher WallStSmart Score of 76/100 (B+).
CDNS
Buy62
out of 100
Grade: C+
CRM
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+78.9%
Fair Value
$720.27
Current Price
$150.12
$570.15 discount
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
Earnings expanding 52.2% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Generating 6.6B in free cash flow
Areas to Watch
Trading at 16.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Elevated debt levels
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 : CRM
The strongest argument for CRM centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 18.7% and operating margin at 21.8%. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 91.7x leaves little room for execution misses.
Bear Case : CRM
The primary concerns for CRM are Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
CDNS profiles as a growth stock while CRM is a mature play — different risk/reward profiles.
CRM carries more volatility with a beta of 1.15 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
CRM generates stronger free cash flow (6.6B), providing more financial flexibility.
Bottom Line
CRM scores higher overall (76/100 vs 62/100), backed by strong 18.7% margins and 13.3% 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.
Salesforce.com Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Salesforce.com, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management (CRM) service and also provides a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.
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