Cadence Design Systems Inc (CDNS)vsSuper Micro Computer Inc (SMCI)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
SMCI
Super Micro Computer Inc
$46.90
-7.62%
TECHNOLOGY · Cap: $27.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Super Micro Computer Inc generates 510% more annual revenue ($33.70B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 3.7%. SMCI appears more attractively valued with a PEG of 0.91. SMCI earns a higher WallStSmart Score of 71/100 (B).
CDNS
Buy62
out of 100
Grade: C+
SMCI
Strong Buy71
out of 100
Grade: B
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
Revenue surging 122.7% year-over-year
Earnings expanding 326.0% YoY
Safe zone — low bankruptcy risk
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
3.7% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
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 : SMCI
The strongest argument for SMCI centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 122.7% demonstrates continued momentum. PEG of 0.91 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 : SMCI
The primary concerns for SMCI are Profit Margin, Piotroski F-Score, Free Cash Flow. Thin 3.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
CDNS profiles as a growth stock while SMCI is a hypergrowth play — different risk/reward profiles.
SMCI carries more volatility with a beta of 1.68 — expect wider price swings.
SMCI is growing revenue faster at 122.7% — sustainability is the question.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
SMCI scores higher overall (71/100 vs 62/100) and 122.7% 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.
Super Micro Computer Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions based on an open, modular architecture. The company is headquartered in San Jose, California.
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