Cadence Design Systems (NASDAQ:CDNS) and Information Analysis (OTCMKTS:IAIC) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

86.4% of Cadence Design Systems shares are owned by institutional investors. 2.3% of Cadence Design Systems shares are owned by insiders. Comparatively, 26.4% of Information Analysis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Cadence Design Systems and Information Analysis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cadence Design Systems 18.83% 31.86% 17.19%
Information Analysis -4.73% -23.73% -13.50%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cadence Design Systems and Information Analysis, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cadence Design Systems 0 5 4 0 2.44
Information Analysis 0 0 0 0 N/A

Cadence Design Systems currently has a consensus price target of $64.43, suggesting a potential downside of 7.06%. Given Cadence Design Systems’ higher possible upside, equities research analysts plainly believe Cadence Design Systems is more favorable than Information Analysis.

Risk & Volatility

Cadence Design Systems has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Information Analysis has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cadence Design Systems and Information Analysis’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cadence Design Systems $2.14 billion 9.08 $345.78 million $1.23 56.36
Information Analysis $8.93 million 0.27 -$50,000.00 N/A N/A

Cadence Design Systems has higher revenue and earnings than Information Analysis.

Summary

Cadence Design Systems beats Information Analysis on 10 of the 11 factors compared between the two stocks.

Cadence Design Systems Company Profile

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 simulation platform; Palladium Z1, an enterprise emulation platform; and Protium S1 field-programmable gate array prototyping platform. The company also provides digital IC design products, such as logic design products for chip planning, design, verification, and test technologies and services; physical implementation tools, including place and route, signal integrity, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for manufacture by a silicon foundry, as well as design for manufacturing products for use in the product development process. 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 interconnect design products to develop printed circuit boards and IC packages. Further, the company provides design intellectual property (IP) products consisting of pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models for use in system-level verification to model correct behavior of full systems interacting with their environments. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. Cadence Design Systems, Inc. was founded in 1988 and is headquartered in San Jose, California.

Information Analysis Company Profile

Information Analysis Incorporated engages in developing and maintaining information technology systems, modernizing client information systems, and performing professional services to government and commercial organizations in the United States. The company develops and provides Web-based and mobile device solutions, including electronic forms conversions for various agencies of the federal government, data analytics, and legacy software migration and modernization. It also sells third-party software products, as well as provides maintenance services. The company was founded in 1979 and is headquartered in Fairfax, Virginia.

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