Cadence Design Systems Inc (CDNS)vsInteractive Brokers Group Inc (IBKR)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
IBKR
Interactive Brokers Group Inc
$87.06
-1.17%
FINANCIAL SERVICES · Cap: $150.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Interactive Brokers Group Inc generates 17% more annual revenue ($6.45B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 16.1%. IBKR appears more attractively valued with a PEG of 2.39. IBKR earns a higher WallStSmart Score of 64/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
IBKR
Buy64
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
Strong operational efficiency at 76.8%
Conservative balance sheet, low leverage
Generating 19.5B in free cash flow
Large-cap with strong market position
16.8% revenue growth
Earnings expanding 22.9% YoY
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
Premium valuation, high expectations priced in
Weak financial health signals
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 : IBKR
The strongest argument for IBKR centers on Operating Margin, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 16.1% and operating margin at 76.8%. Revenue growth of 16.8% 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 : IBKR
The primary concerns for IBKR are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
IBKR carries more volatility with a beta of 1.32 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
IBKR generates stronger free cash flow (19.5B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
IBKR scores higher overall (64/100 vs 62/100), backed by strong 16.1% margins and 16.8% 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.
Interactive Brokers Group Inc
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Interactive Brokers Group, Inc. is a global automated electronic broker. The company is headquartered in Greenwich, Connecticut.
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