Cadence Design Systems Inc (CDNS)vsFlex Ltd (FLEX)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
FLEX
Flex Ltd
$159.51
-2.40%
TECHNOLOGY · Cap: $55.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Flex Ltd generates 405% more annual revenue ($27.91B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 3.1%. FLEX appears more attractively valued with a PEG of 0.94. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
FLEX
Buy60
out of 100
Grade: C
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
Large-cap with strong market position
Conservative balance sheet, low leverage
Growing faster than its price suggests
16.9% revenue growth
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 11.3x book value
3.1% margin — thin
Premium valuation, high expectations priced in
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 : FLEX
The strongest argument for FLEX centers on Market Cap, Debt/Equity, PEG Ratio. Revenue growth of 16.9% demonstrates continued momentum. PEG of 0.94 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 : FLEX
The primary concerns for FLEX are Price/Book, Profit Margin, P/E Ratio. A P/E of 65.0x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
FLEX carries more volatility with a beta of 1.45 — 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 60/100), 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.
Flex Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?