WallStSmart

Cadence Design Systems Inc (CDNS)vsAMTD Digital Inc. (HKD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 3962% more annual revenue ($5.53B vs $136.10M). HKD leads profitability with a 40.2% profit margin vs 21.2%. HKD trades at a lower P/E of 9.3x. HKD earns a higher WallStSmart Score of 70/100 (B).

CDNS

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 3.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.09

HKD

Strong Buy

70

out of 100

Grade: B

Growth: 10.0Profit: 9.0Value: 8.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

HKDUndervalued (+76.3%)

Margin of Safety

+76.3%

Fair Value

$6.33

Current Price

$1.87

$4.46 discount

UndervaluedFair: $6.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDNS6 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Market CapQuality
$114.85B9/10

Large-cap with strong market position

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Operating MarginProfitability
29.7%8/10

Strong operational efficiency at 29.7%

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
23.0%8/10

Earnings expanding 23.0% YoY

HKD6 strengths · Avg: 10.0/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
40.2%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
60.5%10/10

Strong operational efficiency at 60.5%

Revenue GrowthGrowth
340.9%10/10

Revenue surging 340.9% year-over-year

EPS GrowthGrowth
81.0%10/10

Earnings expanding 81.0% YoY

Areas to Watch

CDNS3 concerns · Avg: 2.7/10
Price/BookValuation
15.8x4/10

Trading at 15.8x book value

PEG RatioValuation
3.932/10

Expensive relative to growth rate

P/E RatioValuation
96.6x2/10

Premium valuation, high expectations priced in

HKD3 concerns · Avg: 3.0/10
Market CapQuality
$524.85M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : HKD

The strongest argument for HKD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 40.2% and operating margin at 60.5%. Revenue growth of 340.9% 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 : HKD

The primary concerns for HKD are Market Cap, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

HKD carries more volatility with a beta of 2.00 — expect wider price swings.

HKD is growing revenue faster at 340.9% — 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

HKD scores higher overall (70/100 vs 62/100), backed by strong 40.2% margins and 340.9% revenue growth. 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.

AMTD Digital Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

AMTD Digital Inc. designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions.

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