Cadence Design Systems Inc (CDNS)vsThe Home Depot Inc (HD)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
HD
The Home Depot Inc
$310.78
+3.75%
CONSUMER CYCLICAL · Cap: $310.62B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2913% more annual revenue ($166.59B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.76. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 premium
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
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
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
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
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 : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
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 : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
CDNS profiles as a growth stock while HD 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.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 54/100), 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.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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