Compare Stocks › CDNS vs LLY

Cadence Design Systems, Inc. (CDNS) vs Eli Lilly and Company (LLY): Which Is the Better Buy in 2026?

As of 2026-08-03, CDNS is overvalued at $340, with a DCF intrinsic value of $157 and a margin of safety of -116%. LLY is undervalued at $1149, with an intrinsic value of $1529604356065 and a margin of safety of 100%. Of the two, LLY has the wider margin of safety.

CDNS

Cadence Design Systems, Inc.

$340.02

LLY

Eli Lilly and Company

$1148.84

Rewards

CDNS

★Cadence Design Systems, Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Gross margin of 85.9% 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.

LLY

★Eli Lilly and Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Gross margin of 82.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Eli Lilly and Company scores 73/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

CDNS

⚠FCF yield of 1.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠PEG ratio of 3.11 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
⚠11 insider sales totaling $60.1M with no purchases in the past 3 months — insiders are reducing their exposure.

LLY

⚠Insiders have sold $18.6M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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CDNS

LLY

Valuation

$1.61B

Free Cash Flow

$9.16B

1.72%

FCF Yield

N/A

67.60

Trailing P/E

40.81

35.65

Forward P/E

25.48

Quality & Moat

13.86%

ROIC

37.80%

23.23%

ROE

107.46%

85.87%

Gross Margin

82.83%

3.11

PEG Ratio

1.61

Balance Sheet Safety

0.16

Net Debt / Equity

1.22

N/A

Interest Coverage

N/A

0.52

Net Debt / EBITDA

1.05

0.00%

Dividend Yield

0.60%

CDNS: 2Ties: 2LLY: 7

CDNSLLY

Historical Fundamentals

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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. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

LLY

$1 Retained Earnings Test

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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

LLY

$0.00

created per $1 retained over 3 years

Value Destroyer

Σ Retained

$22.34B

Δ Market Cap

+$708.84

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

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CDNS

116.3% Overvalued

Price is 116.3% above estimated fair value

Current Price: $340.02

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $157.19

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

LLY

100.0% Margin of Safety

Price is 100.0% below estimated fair value

Current Price: $1148.84

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $1529604356065.14

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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CDNS

What growth rate is the market pricing in at $340?

+26.6%

Market-Implied Owner Earnings Growth

Standard FCF implies +22.5%

The market implies +26.6% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +22.5%, reflecting heavy growth investment.

LLY

What growth rate is the market pricing in at $1149?

-30.0%

Market-Implied Owner Earnings Growth

Standard FCF implies -15.1%

The market implies -30.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -15.1%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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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.

LLY

73/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Forensic Accounting

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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.

LLY

-1.83

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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CDNS

Insiders 0.3%Institutions 91.2%Retail & Other 8.5%

No. of Institutional Holders2,144

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.

LLY

Insiders 0.2%Institutions 85.1%Retail & Other 14.8%

No. of Institutional Holders5,685

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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CDNS

Buys (3M)

Buys (12M)

GAVRIELOV MOSHE NACHUM

Director

$13,875

@ $256.94 · 2025-03-28

Open market purchases · includes direct & indirect ownership · excludes option exercises

LLY

Buys (3M)

Buys (12M)

Total value (12M): $4.54M

MONTARCE LUCAS E

Chief Financial Officer

$494,627

@ $691.79 · 2025-08-15

ALVAREZ RALPH

Director

$500,473

@ $660.25 · 2025-08-13

VAN NAARDEN JACOB S.

Officer

$647,360

@ $647.36 · 2025-08-13

SULZBERGER GABRIELLE

Director

$75,018

@ $641.18 · 2025-08-12

FYRWALD J. ERIK

Director

$1.01M

@ $642.33 · 2025-08-12

RICKS DAVID A

Chief Executive Officer

$1.05M

@ $644.77 · 2025-08-12

SKOVRONSKY DANIEL

Officer

$634,405

@ $634.40 · 2025-08-12

JACKSON JAMERE

Director

$127,913

@ $639.57 · 2025-08-08

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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CDNS

Sells (3M)

Sells (12M)

Total value (12M): $105.94M

TENG CHIN-CHI

Officer

$1.53M

@ $339.46 · 2026-07-22

CUNNINGHAM PAUL ALEXANDER

Officer

$766,720

@ $383.36 · 2026-07-15

TENG CHIN-CHI

Officer

$1.73M

@ $384.88 · 2026-06-22

CUNNINGHAM PAUL ALEXANDER

Officer

$782,000

@ $391.00 · 2026-06-15

BRENNAN ITA M

Director

$69,740

@ $387.44 · 2026-06-10

DEVGAN ANIRUDH

Chief Executive Officer

$30.85M

@ $401.51 · 2026-06-02

SCANNELL PAUL

Officer

$2.79M

@ $393.91 · 2026-06-01

DEVGAN ANIRUDH

Chief Executive Officer

$19.20M

@ $370.00 · 2026-05-22

TENG CHIN-CHI

Officer

$1.66M

@ $369.35 · 2026-05-22

SCANNELL PAUL

Officer

$369,559

@ $345.06 · 2026-05-18

SCANNELL PAUL

Officer

$369,559

@ $345.06 · 2026-05-18

WALL JOHN M

Chief Financial Officer

$1.74M

@ $348.71 · 2026-05-05

CUNNINGHAM PAUL ALEXANDER

Officer

$337,490

@ $337.49 · 2026-05-01

SCANNELL PAUL

Officer

$3.56M

@ $339.00 · 2026-05-01

WALL JOHN M

Chief Financial Officer

$6.65M

@ $309.45 · 2026-04-16

CUNNINGHAM PAUL ALEXANDER

Officer

$280,190

@ $280.19 · 2026-04-01

BRENNAN ITA M

Director

$53,105

@ $295.03 · 2026-03-17

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

BRENNAN ITA M

Director

$60,747

@ $337.48 · 2025-12-10

SCANNELL PAUL

Officer

$1.86M

@ $339.43 · 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

DEVGAN ANIRUDH

Chief Executive Officer

$1.80M

@ $304.04 · 2025-01-02

CUNNINGHAM PAUL ALEXANDER

Officer

$198,146

@ $304.84 · 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

SANGIOVANNI VINCENTELLI ALBERTO

Director

$447,675

@ $298.45 · 2024-11-15

TENG CHIN-CHI

Officer

$2.96M

@ $295.60 · 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

SANGIOVANNI VINCENTELLI ALBERTO

Director

$413,970

@ $275.98 · 2024-09-17

NISEWANER KARNA

General Counsel

$181,871

@ $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

SANGIOVANNI VINCENTELLI ALBERTO

Director

$414,360

@ $276.24 · 2024-08-15

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

LLY

Sells (3M)

Sells (12M)

Total value (12M): $3.63B

YUFFA ILYA

Officer

$2.88M

@ $1150.77 · 2026-06-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$15.75M

@ $995.36 · 2026-05-06

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$322.38M

@ $1103.48 · 2026-01-07

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$1.51M

@ $1085.01 · 2026-01-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$3.90M

@ $1085.04 · 2025-12-29

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$2.85M

@ $1085.17 · 2025-12-24

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$260,409

@ $1085.04 · 2025-12-23

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$161.08M

@ $1095.35 · 2025-11-25

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$17.34M

@ $1109.30 · 2025-11-25

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$152.06M

@ $1068.52 · 2025-11-24

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$111.50M

@ $1058.66 · 2025-11-21

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$39.07M

@ $1051.66 · 2025-11-20

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$176.10M

@ $1051.17 · 2025-11-19

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$62.31M

@ $1034.78 · 2025-11-18

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$10.19M

@ $1030.68 · 2025-11-17

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$183.80M

@ $1030.87 · 2025-11-14

ZAKROWSKI DONALD A

Officer

$1.01M

@ $1010.50 · 2025-11-13

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$48.02M

@ $1030.26 · 2025-11-13

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$308.41M

@ $1011.18 · 2025-11-12

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$279.35M

@ $986.64 · 2025-11-11

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$16.41M

@ $972.52 · 2025-11-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$167.09M

@ $933.26 · 2025-11-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$38.47M

@ $951.56 · 2025-11-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$479,038

@ $910.72 · 2025-11-04

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$266.65M

@ $888.83 · 2025-11-03

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$260.17M

@ $863.35 · 2025-10-31

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$3.16M

@ $863.24 · 2025-10-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$9.04M

@ $852.49 · 2025-10-09

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$86.23M

@ $850.27 · 2025-10-08

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$22.72M

@ $848.01 · 2025-10-07

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$137.04M

@ $850.22 · 2025-10-06

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$161.22M

@ $837.93 · 2025-10-03

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$92.50M

@ $821.55 · 2025-10-02

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$107.36M

@ $794.15 · 2025-10-01

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$177.29M

@ $821.47 · 2025-10-01

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$86.79M

@ $763.39 · 2025-09-30

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$18.06M

@ $763.09 · 2025-09-19

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$81.53M

@ $764.65 · 2025-09-18

ZAKROWSKI DONALD A

Officer

$734,930

@ $734.93 · 2025-08-28

YUFFA ILYA

Officer

$783,762

@ $627.01 · 2025-08-11

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$225.42M

@ $805.07 · 2025-07-24

ZAKROWSKI DONALD A

Officer

$716,410

@ $716.41 · 2025-05-27

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(45/100)

"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.

LLY

😐Neutral(59/100)

"Market is pricing this stock without strong emotion in either direction"

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

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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 (45)

LLY

⚪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)

View CDNS Full Analysis View LLY Full Analysis

Frequently Asked Questions: CDNS vs LLY

Is Cadence Design Systems, Inc. or Eli Lilly and Company more undervalued in 2026?▼

Based on our discounted cash flow model, LLY trades at a 100.0% margin of safety (intrinsic value $1529604356065 vs. price $1149), compared to CDNS's -116.3% margin of safety (intrinsic $157 vs. $340).

Which stock has a wider economic moat, Cadence Design Systems, Inc. or Eli Lilly and Company?▼

CDNS scores 91/100 (Wide moat), while LLY scores 73/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Eli Lilly and Company in financial distress?▼

LLY's Altman Z-Score of 2.0 places it in the Grey zone, signaling elevated bankruptcy risk. CDNS scores 13.3 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Cadence Design Systems, Inc. or Eli Lilly and Company?▼

LLY earns 37.8% ROIC versus CDNS's 13.9%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.