Cadence Design Systems Inc (CDNS)vsEli Lilly and Company (LLY)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
LLY
Eli Lilly and Company
$1,131.42
-0.39%
HEALTHCARE · Cap: $948.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 1207% more annual revenue ($72.25B vs $5.53B). LLY leads profitability with a 35.0% profit margin vs 21.2%. LLY appears more attractively valued with a PEG of 1.45. LLY earns a higher WallStSmart Score of 78/100 (B+).
CDNS
Buy62
out of 100
Grade: C+
LLY
Strong Buy78
out of 100
Grade: B+
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 81 in profit
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 49.4%
Revenue surging 55.5% year-over-year
Earnings expanding 169.9% YoY
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 32.4x 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 : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.0% and operating margin at 49.4%. Revenue growth of 55.5% 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 : LLY
The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book.
Key Dynamics to Monitor
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
LLY is growing revenue faster at 55.5% — sustainability is the question.
LLY generates stronger free cash flow (3.0B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LLY scores higher overall (78/100 vs 62/100), backed by strong 35.0% margins and 55.5% 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.
Eli Lilly and Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.
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