Cadence Design Systems Inc (CDNS)vsConstellation Brands Inc Class A (STZ)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
STZ
Constellation Brands Inc Class A
$140.91
+2.27%
CONSUMER DEFENSIVE · Cap: $23.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Constellation Brands Inc Class A generates 65% more annual revenue ($9.14B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 18.5%. STZ appears more attractively valued with a PEG of 2.57. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
STZ
Buy58
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
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Strong operational efficiency at 26.7%
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Expensive relative to growth rate
Revenue declined 11.3%
Earnings declined 15.0%
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 : STZ
The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.
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 : STZ
The primary concerns for STZ are Debt/Equity, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
CDNS profiles as a growth stock while STZ is a declining play — different risk/reward profiles.
CDNS carries more volatility with a beta of 1.13 — expect wider price swings.
CDNS is growing revenue faster at 18.7% — sustainability is the question.
STZ generates stronger free cash flow (344M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 58/100), 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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
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