WallStSmart

Cadence Design Systems Inc (CDNS)vseGain Corporation (EGAN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 5895% more annual revenue ($5.53B vs $92.22M). EGAN leads profitability with a 41.7% profit margin vs 21.2%. EGAN appears more attractively valued with a PEG of 0.99. EGAN earns a higher WallStSmart Score of 69/100 (B-).

CDNS

Buy

62

out of 100

Grade: C+

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

EGAN

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 6.7Quality: 6.0
Piotroski: 3/9Altman Z: -1.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

EGANSignificantly Overvalued (-54.8%)

Margin of Safety

-54.8%

Fair Value

$6.35

Current Price

$7.74

$1.39 premium

UndervaluedFair: $6.35Overvalued

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

EGAN6 strengths · Avg: 9.7/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
53.7%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
41.7%10/10

Keeps 42 of every $100 in revenue as profit

EPS GrowthGrowth
3703.0%10/10

Earnings expanding 3703.0% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.998/10

Growing faster than its price suggests

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

EGAN4 concerns · Avg: 2.5/10
Market CapQuality
$197.64M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-1.87M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-1.012/10

Distress zone — elevated risk

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 : EGAN

The strongest argument for EGAN centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 41.7% and operating margin at 8.9%. PEG of 0.99 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 : EGAN

The primary concerns for EGAN are Market Cap, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

CDNS profiles as a growth stock while EGAN is a mature play — different risk/reward profiles.

CDNS carries more volatility with a beta of 1.13 — 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

EGAN scores higher overall (69/100 vs 62/100), backed by strong 41.7% margins. 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.

eGain Corporation

TECHNOLOGY · SOFTWARE - APPLICATION · USA

eGain Corporation is a software-as-a-service provider of customer engagement solutions in the United States, the United Kingdom, India, and internationally. The company is headquartered in Sunnyvale, California.

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