Cadence Design Systems Inc (CDNS)vsFigma, Inc. (FIG)
CDNS
Cadence Design Systems Inc
$389.04
-1.76%
TECHNOLOGY · Cap: $108.81B
FIG
Figma, Inc.
$19.08
-3.38%
TECHNOLOGY · Cap: $9.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 376% more annual revenue ($5.53B vs $1.16B). CDNS leads profitability with a 21.2% profit margin vs -123.8%. FIG appears more attractively valued with a PEG of 3.37. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
FIG
Avoid30
out of 100
Grade: F
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
Revenue surging 46.1% year-over-year
Conservative balance sheet, low leverage
Areas to Watch
Trading at 16.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
ROE of -100.6% — below average capital efficiency
Earnings declined 51.2%
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 : FIG
The strongest argument for FIG centers on Revenue Growth, Debt/Equity. Revenue growth of 46.1% 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 : FIG
The primary concerns for FIG are Piotroski F-Score, PEG Ratio, Return on Equity.
Key Dynamics to Monitor
CDNS profiles as a growth stock while FIG is a hypergrowth play — different risk/reward profiles.
FIG is growing revenue faster at 46.1% — 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 30/100), backed by strong 21.2% margins and 18.7% revenue growth. Both earn "Buy" and "Avoid" 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.
Figma, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Fortress Investment Group LLC is a publicly owned investment manager. The company is headquartered in New York City.
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