Cadence Design Systems Inc (CDNS)vsWalmart Inc. (WMT)
CDNS
Cadence Design Systems Inc
$374.93
-2.01%
TECHNOLOGY · Cap: $97.79B
WMT
Walmart Inc.
$115.75
+3.39%
CONSUMER DEFENSIVE · Cap: $1.05T
Smart Verdict
WallStSmart Research — data-driven comparison
Walmart Inc. generates 12799% more annual revenue ($713.16B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs 3.1%. CDNS appears more attractively valued with a PEG of 3.44. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
WMT
Hold43
out of 100
Grade: D
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
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 24 in profit
Areas to Watch
Trading at 15.5x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 9.3x book value
3.1% margin — thin
Operating margin of 4.6%
Expensive relative to growth rate
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 : WMT
The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.
Bear Case : CDNS
The primary concerns for CDNS are Price/Book, PEG Ratio, P/E Ratio. A P/E of 82.7x leaves little room for execution misses.
Bear Case : WMT
The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 48.2x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
CDNS profiles as a growth stock while WMT 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.
CDNS generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 43/100), backed by strong 21.2% margins and 18.7% revenue growth. 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.
Walmart Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?