Cadence Design Systems Inc (CDNS)vsShopify Inc (SHOP)
CDNS
Cadence Design Systems Inc
$281.39
-1.03%
TECHNOLOGY · Cap: $78.44B
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 118% more annual revenue ($11.56B vs $5.30B). CDNS leads profitability with a 20.9% profit margin vs 10.6%. CDNS appears more attractively valued with a PEG of 2.54. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
SHOP
Hold48
out of 100
Grade: D+
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
-1729.9%
Fair Value
$6.39
Current Price
$118.42
$112.03 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
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
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 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
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 : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.
Key Dynamics to Monitor
CDNS profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.90 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
SHOP generates stronger free cash flow (715M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 48/100), backed by strong 20.9% margins. 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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