WallStSmart

Cadence Design Systems Inc (CDNS)vsNCR Atleos Corporation (NATL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 25% more annual revenue ($5.53B vs $4.42B). CDNS leads profitability with a 21.2% profit margin vs 3.9%. NATL trades at a lower P/E of 19.8x. CDNS earns a higher WallStSmart Score of 62/100 (C+).

CDNS

Buy

62

out of 100

Grade: C+

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

NATL

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 5.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.14

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

NATL2 strengths · Avg: 10.0/10
Return on EquityProfitability
44.4%10/10

Every $100 of equity generates 44 in profit

EPS GrowthGrowth
52.6%10/10

Earnings expanding 52.6% 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

NATL4 concerns · Avg: 2.8/10
Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Free Cash FlowQuality
$-36.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.142/10

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 : NATL

The strongest argument for NATL centers on Return on Equity, EPS 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 : NATL

The primary concerns for NATL are Price/Book, Profit Margin, Free Cash Flow. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

CDNS profiles as a growth stock while NATL is a value play — different risk/reward profiles.

CDNS carries more volatility with a beta of 1.13 — 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

CDNS scores higher overall (62/100 vs 56/100), backed by strong 21.2% margins and 18.7% 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.

NCR Atleos Corporation

TECHNOLOGY · SOFTWARE - APPLICATION · USA

NCR ATMCo, LLC is a financial technology company in the United States, rest of Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia Pacific.

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