Cadence Design Systems Inc (CDNS)vsThe Travelers Companies Inc (TRV)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
TRV
The Travelers Companies Inc
$303.25
+3.35%
FINANCIAL SERVICES · Cap: $62.06B
Smart Verdict
WallStSmart Research — data-driven comparison
The Travelers Companies Inc generates 785% more annual revenue ($48.94B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 15.5%. TRV appears more attractively valued with a PEG of 2.36. TRV earns a higher WallStSmart Score of 74/100 (B).
CDNS
Buy62
out of 100
Grade: C+
TRV
Strong Buy74
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
Attractively priced relative to earnings
Earnings expanding 357.6% YoY
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
1.0% revenue growth
Distress zone — elevated risk
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 : TRV
The strongest argument for TRV centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 15.5% and operating margin at 18.7%.
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 : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
CDNS profiles as a growth stock while TRV is a value 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.
TRV generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
TRV scores higher overall (74/100 vs 62/100), backed by strong 15.5% 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.
The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
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