Cadence Design Systems Inc (CDNS)vsQualcomm Incorporated (QCOM)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
QCOM
Qualcomm Incorporated
$215.94
-5.67%
TECHNOLOGY · Cap: $263.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Qualcomm Incorporated generates 705% more annual revenue ($44.49B vs $5.53B). QCOM leads profitability with a 22.3% profit margin vs 21.2%. QCOM appears more attractively valued with a PEG of 0.96. QCOM earns a higher WallStSmart Score of 71/100 (B).
CDNS
Buy62
out of 100
Grade: C+
QCOM
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-14.1%
Fair Value
$190.91
Current Price
$215.94
$25.03 premium
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
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Earnings expanding 173.0% YoY
Safe zone — low bankruptcy risk
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Trading at 8.4x book value
Revenue declined 3.5%
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 : QCOM
The strongest argument for QCOM centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with margins at 22.3% and operating margin at 22.1%. PEG of 0.96 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 : QCOM
The primary concerns for QCOM are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
CDNS profiles as a growth stock while QCOM is a declining play — different risk/reward profiles.
QCOM carries more volatility with a beta of 1.49 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
QCOM generates stronger free cash flow (1.9B), providing more financial flexibility.
Bottom Line
QCOM scores higher overall (71/100 vs 62/100), backed by strong 22.3% 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.
Qualcomm Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Qualcomm is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware. It creates semiconductors, software, and services related to wireless technology. It owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA and WCDMA mobile communications standards.
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