Cadence Design Systems Inc (CDNS)vsQnity Electronics, Inc (Q)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
Q
Qnity Electronics, Inc
$142.05
+0.17%
TECHNOLOGY · Cap: $32.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Cadence Design Systems Inc generates 12% more annual revenue ($5.53B vs $4.95B). CDNS leads profitability with a 21.2% profit margin vs 13.1%. Q appears more attractively valued with a PEG of 2.55. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
Q
Buy51
out of 100
Grade: C-
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
Strong operational efficiency at 22.8%
17.6% revenue growth
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 21.7%
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 : Q
The strongest argument for Q centers on Operating Margin, Revenue Growth. Revenue growth of 17.6% 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 : Q
The primary concerns for Q are Piotroski F-Score, PEG Ratio, P/E Ratio. A P/E of 50.2x leaves little room for execution misses.
Key Dynamics to Monitor
CDNS is growing revenue faster at 18.7% — 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 51/100), 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.
Qnity Electronics, Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.
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