Head to Head Comparison: Cellebrite DI (NASDAQ:CLBT) vs. Cadence Design Systems (NASDAQ:CDNS)

Cadence Design Systems (NASDAQ:CDNS) and Cellebrite DI (NASDAQ:CLBT) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

84.8% of Cadence Design Systems shares are owned by institutional investors. Comparatively, 45.9% of Cellebrite DI shares are owned by institutional investors. 0.5% of Cadence Design Systems shares are owned by insiders. Comparatively, 5.7% of Cellebrite DI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cadence Design Systems and Cellebrite DI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadence Design Systems	23.60%	27.98%	15.35%
Cellebrite DI	11.43%	15.58%	8.29%

Risk and Volatility

Cadence Design Systems has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Cellebrite DI has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares Cadence Design Systems and Cellebrite DI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadence Design Systems	$5.30 billion	16.96	$1.11 billion	$5.03	64.84
Cellebrite DI	$475.67 million	5.66	$78.33 million	$0.22	49.05

Cadence Design Systems has higher revenue and earnings than Cellebrite DI. Cellebrite DI is trading at a lower price-to-earnings ratio than Cadence Design Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Cadence Design Systems and Cellebrite DI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Design Systems	0	3	13	1	2.88
Cellebrite DI	1	0	5	0	2.67

Cadence Design Systems currently has a consensus target price of $403.88, indicating a potential upside of 23.84%. Cellebrite DI has a consensus target price of $16.70, indicating a potential upside of 54.77%. Given Cellebrite DI’s higher probable upside, analysts plainly believe Cellebrite DI is more favorable than Cadence Design Systems.

Summary

Cadence Design Systems beats Cellebrite DI on 12 of the 15 factors compared between the two stocks.

About Cadence Design Systems

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus synthesis and Joules RTL power solutions, as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and Innovus implementation system, a physical implementation system. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science industries. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.

About Cellebrite DI

Cellebrite DI Ltd. develops solutions for legally sanctioned investigations in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company's DI suite of solutions allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations used in various cases, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, cryptocurrency, and intellectual property theft. It provides Inseyets, a digital forensics software that collects and reviews digital evidence from various digital sources when conducting legally sanctioned investigations. The company's digital forensics software also offers data extraction, decoding capabilities, workflows, and automation capabilities. In addition, it provides Cellebrite Pathfinder, which reduces the time spent manually reviewing digital evidence by automating data analysis and visualization; Smart Search, an open source intelligence tool that automates the collection and review of publicly available online data; and Guardian, a case and evidence management solution. Further, the company offers digital forensic software for enterprises and service providers, including Inseyets for Enterprise, Endpoint Inspector, and Mobile Now; and professional services, such as training and certification services, and other services. It serves federal and state and local agencies. The company was incorporated in 1999 and is headquartered in Petah Tikva, Israel.