Cadence Design Systems Inc (CDNS)vsFidelity National Information Services Inc (FIS)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
FIS
Fidelity National Information Services Inc
$40.95
-1.28%
TECHNOLOGY · Cap: $22.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Fidelity National Information Services Inc generates 107% more annual revenue ($11.44B vs $5.53B). FIS leads profitability with a 23.4% profit margin vs 21.2%. FIS appears more attractively valued with a PEG of 0.24. FIS earns a higher WallStSmart Score of 87/100 (A).
CDNS
Buy62
out of 100
Grade: C+
FIS
Exceptional Buy87
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+8.2%
Fair Value
$52.61
Current Price
$40.95
$11.66 discount
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
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 30.1% year-over-year
Earnings expanding 3041.0% YoY
Keeps 23 of every $100 in revenue as profit
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Distress zone — elevated risk
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 : FIS
The strongest argument for FIS centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 23.4% and operating margin at 16.4%. Revenue growth of 30.1% 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 : FIS
The primary concerns for FIS are Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
FIS is growing revenue faster at 30.1% — sustainability is the question.
FIS generates stronger free cash flow (695M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FIS scores higher overall (87/100 vs 62/100), backed by strong 23.4% margins and 30.1% revenue growth. Both earn "Exceptional 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.
Fidelity National Information Services Inc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
FIS is an American Fortune 500 company which offers a wide range of financial products and services. Headquartered in Jacksonville, Florida, FIS employs approximately 63,000 people worldwide. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions.
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