WallStSmart

Cadence Design Systems Inc (CDNS)vsPattern Group Inc. Series A Common Stock (PTRN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cadence Design Systems Inc generates 102% more annual revenue ($5.53B vs $2.73B). CDNS leads profitability with a 21.2% profit margin vs 0.8%. 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

PTRN

Hold

37

out of 100

Grade: F

Growth: 7.3Profit: 4.0Value: 5.0Quality: 8.0
Piotroski: 2/9Altman Z: 4.20

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
$108.81B9/10

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

PTRN3 strengths · Avg: 10.0/10
Revenue GrowthGrowth
43.2%10/10

Revenue surging 43.2% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.2010/10

Safe zone — low bankruptcy risk

Areas to Watch

CDNS3 concerns · Avg: 2.7/10
Price/BookValuation
16.4x4/10

Trading at 16.4x book value

PEG RatioValuation
3.662/10

Expensive relative to growth rate

P/E RatioValuation
91.7x2/10

Premium valuation, high expectations priced in

PTRN4 concerns · Avg: 2.5/10
Profit MarginProfitability
0.8%3/10

0.8% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-23.2%2/10

ROE of -23.2% — below average capital efficiency

EPS GrowthGrowth
-5.9%2/10

Earnings declined 5.9%

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 : PTRN

The strongest argument for PTRN centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 43.2% demonstrates continued momentum.

Bear Case : CDNS

The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 91.7x leaves little room for execution misses.

Bear Case : PTRN

The primary concerns for PTRN are Profit Margin, Piotroski F-Score, Return on Equity. Thin 0.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

CDNS profiles as a growth stock while PTRN is a hypergrowth play — different risk/reward profiles.

PTRN is growing revenue faster at 43.2% — sustainability is the question.

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

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CDNS scores higher overall (62/100 vs 37/100), backed by strong 21.2% margins and 18.7% revenue growth. 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.

Pattern Group Inc. Series A Common Stock

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Pattern Group Inc. operates online marketplaces that sell various consumer products. The company is headquartered in Lehi, Utah.

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