Cadence Design Systems Inc (CDNS)vsSalesforce.com Inc (CRM)
CDNS
Cadence Design Systems Inc
$289.37
+1.55%
TECHNOLOGY · Cap: $79.69B
CRM
Salesforce.com Inc
$247.72
+1.94%
TECHNOLOGY · Cap: $203.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 653% more annual revenue ($43.94B vs $5.84B). CDNS leads profitability with a 23.6% profit margin vs 22.0%. CRM appears more attractively valued with a PEG of 0.90. CRM earns a higher WallStSmart Score of 74/100 (B).
CDNS
Strong Buy68
out of 100
Grade: B-
CRM
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+65.7%
Fair Value
$721.77
Current Price
$247.72
$474.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 125.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Mega-cap, among the largest globally
Earnings expanding 118.9% YoY
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 21.4%
Areas to Watch
Expensive relative to growth rate
Trading at 11.6x book value
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 EPS Growth, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.6% and operating margin at 28.6%. Revenue growth of 24.2% demonstrates continued momentum.
Bull Case : CRM
The strongest argument for CRM centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 22.0% and operating margin at 21.4%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : CDNS
The primary concerns for CDNS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 56.5x 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 1.20 — expect wider price swings.
CDNS is growing revenue faster at 24.2% — sustainability is the question.
CRM generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
CRM scores higher overall (74/100 vs 68/100), backed by strong 22.0% margins and 10.8% revenue growth. Both earn "Strong Buy" and "Strong 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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