Cadence Design Systems Inc (CDNS)vsKingsoft Cloud Holdings Ltd (KC)
CDNS
Cadence Design Systems Inc
$376.19
+0.32%
TECHNOLOGY · Cap: $114.85B
KC
Kingsoft Cloud Holdings Ltd
$11.69
-6.70%
TECHNOLOGY · Cap: $3.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Kingsoft Cloud Holdings Ltd generates 86% more annual revenue ($10.29B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs -9.4%. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
KC
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+41.2%
Fair Value
$24.55
Current Price
$11.69
$12.86 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
Revenue surging 37.2% year-over-year
Reasonable price relative to book value
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.0% earnings growth
Weak financial health signals
ROE of -8.4% — below average capital efficiency
Negative free cash flow — burning cash
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 : KC
The strongest argument for KC centers on Revenue Growth, Price/Book. Revenue growth of 37.2% 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 : KC
The primary concerns for KC are EPS Growth, Piotroski F-Score, Return on Equity.
Key Dynamics to Monitor
CDNS profiles as a growth stock while KC is a hypergrowth play — different risk/reward profiles.
KC carries more volatility with a beta of 1.95 — expect wider price swings.
KC is growing revenue faster at 37.2% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 39/100), backed by strong 21.2% margins and 18.7% revenue growth. KC offers better value entry with a 41.2% margin of safety. Both earn "Buy" and "Hold" 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.
Kingsoft Cloud Holdings Ltd
TECHNOLOGY · SOFTWARE - APPLICATION · China
Kingsoft Cloud Holdings Limited provides cloud services to companies and organizations in China. The company is headquartered in Beijing, the People's Republic of China.
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