WallStSmart

Cadence Design Systems Inc (CDNS)vsMagnite Inc (MGNI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 665% more annual revenue ($5.53B vs $722.55M). MGNI leads profitability with a 22.0% profit margin vs 21.2%. MGNI appears more attractively valued with a PEG of 0.09. MGNI 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

MGNI

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 6.0Value: 9.3Quality: 5.5
Piotroski: 4/9Altman Z: 0.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CDNS.

MGNIUndervalued (+49.4%)

Margin of Safety

+49.4%

Fair Value

$23.30

Current Price

$14.68

$8.62 discount

UndervaluedFair: $23.30Overvalued

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

MGNI6 strengths · Avg: 9.2/10
PEG RatioValuation
0.0910/10

Growing faster than its price suggests

EPS GrowthGrowth
230.0%10/10

Earnings expanding 230.0% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

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

MGNI3 concerns · Avg: 2.3/10
Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Free Cash FlowQuality
$-130.17M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.372/10

Distress zone — elevated risk

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 : MGNI

The strongest argument for MGNI centers on PEG Ratio, EPS Growth, Debt/Equity. Profitability is solid with margins at 22.0% and operating margin at 4.7%. PEG of 0.09 suggests the stock is reasonably priced for its growth.

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 : MGNI

The primary concerns for MGNI are Operating Margin, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

CDNS profiles as a growth stock while MGNI is a mature play — different risk/reward profiles.

MGNI carries more volatility with a beta of 2.32 — expect wider price swings.

CDNS is growing revenue faster at 18.7% — sustainability is the question.

CDNS generates stronger free cash flow (307M), providing more financial flexibility.

Bottom Line

MGNI scores higher overall (70/100 vs 62/100), backed by strong 22.0% margins. 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.

Magnite Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Magnite, Inc. operates an independent sales advertising platform in the United States and internationally. The company is headquartered in Los Angeles, California.

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