Cadence Design Systems Inc (CDNS)vsWPP PLC ADR (WPP)
CDNS
Cadence Design Systems Inc
$376.19
-0.85%
TECHNOLOGY · Cap: $114.85B
WPP
WPP PLC ADR
$17.70
-4.74%
COMMUNICATION SERVICES · Cap: $4.01B
Smart Verdict
WallStSmart Research — data-driven comparison
WPP PLC ADR generates 145% more annual revenue ($13.55B vs $5.53B). CDNS leads profitability with a 21.2% profit margin vs -1.6%. CDNS appears more attractively valued with a PEG of 3.93. CDNS earns a higher WallStSmart Score of 62/100 (C+).
CDNS
Buy62
out of 100
Grade: C+
WPP
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CDNS.
Margin of Safety
+68.9%
Fair Value
$58.87
Current Price
$17.70
$41.17 discount
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
Generating 1.7B in free cash flow
Areas to Watch
Trading at 15.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Operating margin of 2.2%
Weak financial health signals
Expensive relative to growth rate
Revenue declined 8.3%
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 : WPP
The strongest argument for WPP centers on Free Cash Flow.
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 : WPP
The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.69 is elevated, increasing financial risk.
Key Dynamics to Monitor
CDNS profiles as a growth stock while WPP is a turnaround 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.
WPP generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
CDNS scores higher overall (62/100 vs 34/100), backed by strong 21.2% margins and 18.7% revenue growth. WPP offers better value entry with a 68.9% margin of safety. Both earn "Buy" and "Avoid" 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.
WPP PLC ADR
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.
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