WallStSmart

Cadence Design Systems Inc (CDNS)vsDaily Journal Corp (DJCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 5777% more annual revenue ($5.53B vs $94.08M). CDNS leads profitability with a 21.2% profit margin vs 14.8%. CDNS appears more attractively valued with a PEG of 3.93. CDNS earns a higher WallStSmart Score of 62/100 (C+).

CDNS

Buy

62

out of 100

Grade: C+

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

DJCO

Buy

57

out of 100

Grade: C

Growth: 8.7Profit: 5.5Value: 2.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

DJCOSignificantly Overvalued (-87.3%)

Margin of Safety

-87.3%

Fair Value

$297.93

Current Price

$519.41

$221.48 premium

UndervaluedFair: $297.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

DJCO5 strengths · Avg: 9.2/10
EPS GrowthGrowth
57.6%10/10

Earnings expanding 57.6% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.6510/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.0%8/10

Revenue surging 25.0% year-over-year

Areas to Watch

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

DJCO4 concerns · Avg: 2.5/10
Market CapQuality
$715.60M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.0%3/10

ROE of 4.0% — below average capital efficiency

PEG RatioValuation
4.322/10

Expensive relative to growth rate

P/E RatioValuation
51.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : DJCO

The strongest argument for DJCO centers on EPS Growth, Debt/Equity, Altman Z-Score. Revenue growth of 25.0% demonstrates continued momentum.

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 : DJCO

The primary concerns for DJCO are Market Cap, Return on Equity, PEG Ratio. A P/E of 51.2x leaves little room for execution misses.

Key Dynamics to Monitor

CDNS carries more volatility with a beta of 1.13 — expect wider price swings.

DJCO is growing revenue faster at 25.0% — sustainability is the question.

CDNS generates stronger free cash flow (307M), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CDNS scores higher overall (62/100 vs 57/100), 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.

Daily Journal Corp

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Daily Journal Corporation publishes newspapers and websites covering California, Arizona, and Utah. The company is headquartered in Los Angeles, California.

Want to dig deeper into these stocks?