Compare Stocks › CDNS vs JNJ
Cadence Design Systems, Inc. (CDNS) vs Johnson & Johnson (JNJ)
CDNS
Cadence Design Systems, Inc.
$287.40
VS
JNJ
Johnson & Johnson
$237.60
Rewards
CDNS
- ★Cadence Design Systems, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 86.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Cadence Design Systems, Inc. scores 91/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
JNJ
- ★Johnson & Johnson has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
- ★Gross margin of 68.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Johnson & Johnson scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
Risks
CDNS
- ⚠FCF yield of 1.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠PEG ratio of 4.86 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠5 insider sales totaling $2.9M with no purchases in the past 3 months — insiders are reducing their exposure.
JNJ
- ⚠FCF yield of 2.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠7 insider sales totaling $58.4M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →CDNS
JNJ
Valuation
$1.51B
Free Cash Flow
$16.63B
1.90%
FCF Yield
2.90%
70.96
Trailing P/E
21.56
30.57
Forward P/E
18.90
Quality & Moat
16.87%
ROIC
13.63%
20.26%
ROE
32.87%
86.36%
Gross Margin
68.08%
4.86
PEG Ratio
0.44
Balance Sheet Safety
0.49
Debt / Equity
0.60
N/A
Interest Coverage
N/A
-0.26
Net Debt / EBITDA
0.86
N/A
Dividend Yield
2.19%
CDNS: 4Ties: 1JNJ: 6
CDNSJNJ
Historical Fundamentals
Learn more →CDNS
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
JNJ
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →CDNS
$12.84
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$3.21B
Δ Market Cap
+$41.16B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
JNJ
$0.91
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$40.05B
Δ Market Cap
+$36.63B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →CDNS
68.2% Overvalued
Price is 68.2% above estimated fair value
Current Price: $287.40
Strongly undervalued
Fairly valued
Strongly overvalued
Fair Value: $170.90
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
JNJ
2.9% Margin of Safety
Price is 2.9% below estimated fair value
Current Price: $237.60
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $244.77
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →CDNS
What growth rate is the market pricing in at $287?
+25.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +20.8%
The market implies +25.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +20.8%, reflecting heavy growth investment.
JNJ
What growth rate is the market pricing in at $238?
+9.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +15.8%
The market implies +9.3% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +15.8%, reflecting heavy growth investment expected to generate future returns.
Economic Moat Score
Learn more →CDNS
91/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
JNJ
90/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
Forensic Accounting
Learn more →CDNS
-2.52
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
JNJ
-2.31
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →CDNS
Insiders 0.3%Institutions 90.2%Retail & Other 9.5%
No. of Institutional Holders2,099
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
JNJ
Insiders 0.1%Institutions 75.8%Retail & Other 24.2%
No. of Institutional Holders5,544
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →CDNS
0
Buys (3M)
1
Buys (12M)
Total value (12M): $13,875
GAVRIELOV MOSHE NACHUM
Director
$13,875
@ $256.94 · 2025-03-28
Open market purchases · includes direct & indirect ownership · excludes option exercises
JNJ
0
Buys (3M)
1
Buys (12M)
Total value (12M): $257,688
MORIKIS JOHN G
Director
$257,688
@ $206.15 · 2025-11-26
WEINBERGER MARK A
Director
$147,220
@ $147.22 · 2024-12-12
WOODS EUGENE A
Director
$14,553
@ $145.53 · 2024-04-30
Open market purchases · includes direct & indirect ownership · excludes option exercises
Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →CDNS
5
Sells (3M)
31
Sells (12M)
Total value (12M): $45.08M
CUNNINGHAM PAUL ALEXANDER
Officer
$297,780
@ $297.78 · 2026-03-02
CUNNINGHAM PAUL ALEXANDER
Officer
$295,090
@ $295.09 · 2026-02-02
GAVRIELOV MOSHE NACHUM
Director
$7,898
@ $315.92 · 2026-01-21
TENG CHIN-CHI
Officer
$2.01M
@ $317.96 · 2026-01-08
CUNNINGHAM PAUL ALEXANDER
Officer
$315,700
@ $315.70 · 2026-01-02
WALL JOHN M
Chief Financial Officer
$8.86M
@ $318.57 · 2025-12-16
SCANNELL PAUL
Officer
$1.86M
@ $339.43 · 2025-12-10
BRENNAN ITA M
Director
$60,747
@ $337.48 · 2025-12-10
TENG CHIN-CHI
Officer
$2.02M
@ $337.99 · 2025-12-08
DEVGAN ANIRUDH
Chief Executive Officer
$6.80M
@ $340.00 · 2025-12-05
CUNNINGHAM PAUL ALEXANDER
Officer
$312,640
@ $312.64 · 2025-12-01
TENG CHIN-CHI
Officer
$1.88M
@ $324.94 · 2025-11-06
DEVGAN ANIRUDH
Chief Executive Officer
$1.82M
@ $327.80 · 2025-11-05
CUNNINGHAM PAUL ALEXANDER
Officer
$340,260
@ $340.26 · 2025-11-03
CUNNINGHAM PAUL ALEXANDER
Officer
$348,270
@ $348.27 · 2025-10-01
WALL JOHN M
Chief Financial Officer
$2.62M
@ $349.16 · 2025-09-30
BRENNAN ITA M
Director
$60,213
@ $334.52 · 2025-09-10
CUNNINGHAM PAUL ALEXANDER
Officer
$343,950
@ $343.95 · 2025-09-02
TENG CHIN-CHI
Officer
$2.94M
@ $350.10 · 2025-08-18
CUNNINGHAM PAUL ALEXANDER
Officer
$358,720
@ $358.72 · 2025-08-01
TENG CHIN-CHI
Officer
$2.84M
@ $312.69 · 2025-07-17
CUNNINGHAM PAUL ALEXANDER
Officer
$306,350
@ $306.35 · 2025-07-01
TENG CHIN-CHI
Officer
$2.68M
@ $300.92 · 2025-06-17
CUNNINGHAM PAUL ALEXANDER
Officer
$302,000
@ $302.00 · 2025-06-13
BRENNAN ITA M
Director
$54,720
@ $304.00 · 2025-06-10
CUNNINGHAM PAUL ALEXANDER
Officer
$185,880
@ $285.97 · 2025-06-02
DEVGAN ANIRUDH
Chief Executive Officer
$3.33M
@ $310.00 · 2025-05-02
CUNNINGHAM PAUL ALEXANDER
Officer
$196,950
@ $303.00 · 2025-05-01
SCANNELL PAUL
Officer
$1.41M
@ $300.00 · 2025-04-29
BRENNAN ITA M
Director
$49,500
@ $275.00 · 2025-04-24
CUNNINGHAM PAUL ALEXANDER
Officer
$164,216
@ $252.64 · 2025-04-01
NISEWANER KARNA
General Counsel
$455,562
@ $246.25 · 2025-03-17
CUNNINGHAM PAUL ALEXANDER
Officer
$164,274
@ $252.73 · 2025-03-03
NISEWANER KARNA
General Counsel
$169,073
@ $296.10 · 2025-02-18
TENG CHIN-CHI
Officer
$3.88M
@ $303.94 · 2025-02-10
CUNNINGHAM PAUL ALEXANDER
Officer
$190,008
@ $292.32 · 2025-02-03
DEVGAN ANIRUDH
Chief Executive Officer
$28.88M
@ $310.00 · 2025-01-06
TENG CHIN-CHI
Officer
$3.75M
@ $299.85 · 2025-01-03
CUNNINGHAM PAUL ALEXANDER
Officer
$198,146
@ $304.84 · 2025-01-02
DEVGAN ANIRUDH
Chief Executive Officer
$1.80M
@ $304.04 · 2025-01-02
WALL JOHN M
Chief Financial Officer
$1.31M
@ $309.03 · 2024-12-18
SCANNELL PAUL
Officer
$969,628
@ $305.78 · 2024-12-13
CUNNINGHAM PAUL ALEXANDER
Officer
$199,024
@ $306.19 · 2024-12-02
TENG CHIN-CHI
Officer
$1.79M
@ $310.17 · 2024-11-22
TENG CHIN-CHI
Officer
$2.96M
@ $295.60 · 2024-11-15
SANGIOVANNI VINCENTELLI ALBERTO
Director
$447,675
@ $298.45 · 2024-11-15
CUNNINGHAM PAUL ALEXANDER
Officer
$179,400
@ $276.00 · 2024-11-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$425,490
@ $283.66 · 2024-10-15
WALL JOHN M
Chief Financial Officer
$6,589
@ $263.56 · 2024-10-08
CUNNINGHAM PAUL ALEXANDER
Officer
$177,736
@ $273.44 · 2024-10-01
NISEWANER KARNA
General Counsel
$181,871
@ $275.98 · 2024-09-17
SANGIOVANNI VINCENTELLI ALBERTO
Director
$413,970
@ $275.98 · 2024-09-17
CUNNINGHAM PAUL ALEXANDER
Officer
$173,478
@ $266.89 · 2024-09-03
WALL JOHN M
Chief Financial Officer
$2.66M
@ $265.91 · 2024-08-28
NISEWANER KARNA
General Counsel
$339,021
@ $279.49 · 2024-08-16
TENG CHIN-CHI
Officer
$2.76M
@ $276.36 · 2024-08-15
SANGIOVANNI VINCENTELLI ALBERTO
Director
$414,360
@ $276.24 · 2024-08-15
CUNNINGHAM PAUL ALEXANDER
Officer
$173,056
@ $266.24 · 2024-08-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$471,855
@ $314.57 · 2024-07-15
NISEWANER KARNA
General Counsel
$184,650
@ $307.75 · 2024-07-01
CUNNINGHAM PAUL ALEXANDER
Officer
$200,038
@ $307.75 · 2024-07-01
TENG CHIN-CHI
Officer
$3.06M
@ $305.84 · 2024-07-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$463,635
@ $309.09 · 2024-06-14
CUNNINGHAM PAUL ALEXANDER
Officer
$191,750
@ $295.00 · 2024-06-11
TENG CHIN-CHI
Officer
$9.57M
@ $297.45 · 2024-06-06
NISEWANER KARNA
General Counsel
$172,386
@ $287.31 · 2024-06-03
SANGIOVANNI VINCENTELLI ALBERTO
Director
$430,705
@ $287.14 · 2024-05-15
NISEWANER KARNA
General Counsel
$165,216
@ $275.36 · 2024-05-01
CUNNINGHAM PAUL ALEXANDER
Officer
$275,360
@ $275.36 · 2024-05-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$463,238
@ $308.83 · 2024-04-15
NISEWANER KARNA
General Counsel
$186,276
@ $310.46 · 2024-04-01
CUNNINGHAM PAUL ALEXANDER
Officer
$310,460
@ $310.46 · 2024-04-01
WALL JOHN M
Chief Financial Officer
$6.76M
@ $311.40 · 2024-03-28
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
JNJ
7
Sells (3M)
12
Sells (12M)
Total value (12M): $101.23M
DECKER ROBERT J
Officer
$1.01M
@ $247.87 · 2026-02-27
SCHMID TIMOTHY
Officer
$324,763
@ $245.66 · 2026-02-20
SCHMID TIMOTHY
Officer
$5.53M
@ $244.33 · 2026-02-18
WOLK JOSEPH J
Chief Financial Officer
$21.77M
@ $242.80 · 2026-02-17
SWANSON JAMES D
Chief Technology Officer
$15.11M
@ $243.39 · 2026-02-17
BROADHURST VANESSA
Officer
$1.51M
@ $243.39 · 2026-02-17
REED JOHN C
Officer
$13.11M
@ $243.00 · 2026-02-17
REED JOHN C
Officer
$4.19M
@ $192.71 · 2025-10-17
TAUBERT JENNIFER L
Officer
$10.04M
@ $177.81 · 2025-09-04
DUATO JOAQUIN BOIX
Chief Executive Officer
$22.55M
@ $179.21 · 2025-08-22
WOLK JOSEPH J
Chief Financial Officer
$2.98M
@ $176.91 · 2025-08-15
REED JOHN C
Officer
$3.13M
@ $163.55 · 2025-07-17
DECKER ROBERT J
Officer
$1.16M
@ $165.88 · 2025-02-25
SCHMID TIMOTHY
Officer
$62,928
@ $156.15 · 2025-02-18
WOLK JOSEPH J
Chief Financial Officer
$2.00M
@ $153.89 · 2025-02-07
DECKER ROBERT J
Officer
$930,113
@ $165.06 · 2024-08-30
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →CDNS
😐Neutral(42/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
JNJ
😐Neutral(59/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →CDNS
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (42)
JNJ
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (59)