Cadence Design Systems Inc (CDNS)vsServiceNow Inc (NOW)
CDNS
Cadence Design Systems Inc
$281.39
-1.03%
TECHNOLOGY · Cap: $78.44B
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 151% more annual revenue ($13.28B vs $5.30B). CDNS leads profitability with a 20.9% profit margin vs 13.2%. NOW appears more attractively valued with a PEG of 1.06. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
NOW
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-129.2%
Fair Value
$122.75
Current Price
$281.39
$158.64 premium
Margin of Safety
-404.2%
Fair Value
$20.44
Current Price
$103.06
$82.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.8%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Keeps 21 of every $100 in revenue as profit
Large-cap with strong market position
Revenue surging 20.7% year-over-year
Generating 2.0B in free cash flow
Areas to Watch
Trading at 14.0x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CDNS
The strongest argument for CDNS centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 20.9% and operating margin at 32.8%.
Bull Case : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth, Free Cash Flow. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 69.9x leaves little room for execution misses.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 62.7x leaves little room for execution misses.
Key Dynamics to Monitor
CDNS profiles as a mature stock while NOW is a growth play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.02 — expect wider price swings.
NOW is growing revenue faster at 20.7% — sustainability is the question.
NOW generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 56/100), backed by strong 20.9% margins. 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.
ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?