Cadence Design Systems Inc (CDNS)vsSAP SE ADR (SAP)
CDNS
Cadence Design Systems Inc
$289.37
+1.55%
TECHNOLOGY · Cap: $79.69B
SAP
SAP SE ADR
$206.36
+0.20%
TECHNOLOGY · Cap: $248.28B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 554% more annual revenue ($38.19B vs $5.84B). CDNS leads profitability with a 23.6% profit margin vs 20.4%. SAP appears more attractively valued with a PEG of 1.64. CDNS earns a higher WallStSmart Score of 68/100 (B-).
CDNS
Strong Buy68
out of 100
Grade: B-
SAP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
-30.1%
Fair Value
$151.01
Current Price
$206.36
$55.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 125.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 20 in profit
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 27.6%
Earnings expanding 30.6% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 11.6x book value
Premium valuation, high expectations priced in
Expensive relative to growth rate
Moderate valuation
Trading at 64.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CDNS
The strongest argument for CDNS centers on EPS Growth, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.6% and operating margin at 28.6%. Revenue growth of 24.2% demonstrates continued momentum.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 27.6%.
Bear Case : CDNS
The primary concerns for CDNS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 56.5x leaves little room for execution misses.
Bear Case : SAP
The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
CDNS profiles as a growth stock while SAP is a mature play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.14 — expect wider price swings.
CDNS is growing revenue faster at 24.2% — sustainability is the question.
SAP generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (68/100 vs 64/100), backed by strong 23.6% margins and 24.2% revenue growth. 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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