WallStSmart

Cadence Design Systems Inc (CDNS)vsElastic NV (ESTC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 218% more annual revenue ($5.53B vs $1.74B). CDNS leads profitability with a 21.2% profit margin vs 21.1%. CDNS appears more attractively valued with a PEG of 3.66. 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

ESTC

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 3.5Value: 6.7Quality: 5.0
Piotroski: 3/9Altman Z: 0.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

ESTCUndervalued (+64.1%)

Margin of Safety

+64.1%

Fair Value

$172.16

Current Price

$58.73

$113.43 discount

UndervaluedFair: $172.16Overvalued

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
$108.81B9/10

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

ESTC3 strengths · Avg: 8.3/10
Profit MarginProfitability
21.1%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

Areas to Watch

CDNS3 concerns · Avg: 2.7/10
Price/BookValuation
16.4x4/10

Trading at 16.4x book value

PEG RatioValuation
3.662/10

Expensive relative to growth rate

P/E RatioValuation
91.7x2/10

Premium valuation, high expectations priced in

ESTC4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.172/10

Expensive relative to growth rate

Return on EquityProfitability
-10.7%2/10

ROE of -10.7% — below average capital efficiency

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 : ESTC

The strongest argument for ESTC centers on Profit Margin, P/E Ratio, Revenue Growth. Profitability is solid with margins at 21.1% and operating margin at -3.5%. Revenue growth of 16.0% 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 : ESTC

The primary concerns for ESTC are EPS Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

CDNS 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.

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 55/100), backed by strong 21.2% margins and 18.7% revenue growth. ESTC offers better value entry with a 64.1% margin of safety. 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.

Elastic NV

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Elastic NV, a search company, offers technology that enables users to search through structured and unstructured data for a variety of consumer and business applications. The company is headquartered in Mountain View, California.

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