Cadence Design Systems Inc (CDNS)vsGilead Sciences Inc (GILD)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
GILD
Gilead Sciences Inc
$129.16
-2.03%
HEALTHCARE · Cap: $158.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Gilead Sciences Inc generates 438% more annual revenue ($29.74B vs $5.53B). GILD leads profitability with a 31.0% profit margin vs 21.2%. GILD appears more attractively valued with a PEG of 2.14. GILD earns a higher WallStSmart Score of 68/100 (B-).
CDNS
Buy62
out of 100
Grade: C+
GILD
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+41.6%
Fair Value
$221.22
Current Price
$129.16
$92.06 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
Every $100 of equity generates 39 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 39.3%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
4.4% revenue growth
Grey zone — moderate 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 : GILD
The strongest argument for GILD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 39.3%.
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 : GILD
The primary concerns for GILD are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
CDNS profiles as a growth stock while GILD is a value 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.
GILD generates stronger free cash flow (2.4B), providing more financial flexibility.
Bottom Line
GILD scores higher overall (68/100 vs 62/100), backed by strong 31.0% 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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