Riskified (NYSE:RSKD – Get Free Report) and Cadence Design Systems (NASDAQ:CDNS – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional and Insider Ownership
59.0% of Riskified shares are owned by institutional investors. Comparatively, 84.8% of Cadence Design Systems shares are owned by institutional investors. 17.4% of Riskified shares are owned by company insiders. Comparatively, 0.5% of Cadence Design Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Riskified has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Riskified | -4.23% | -3.93% | -2.79% |
| Cadence Design Systems | 23.60% | 27.98% | 15.35% |
Earnings & Valuation
This table compares Riskified and Cadence Design Systems”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Riskified | $344.64 million | 2.65 | -$27.57 million | ($0.11) | -56.14 |
| Cadence Design Systems | $5.30 billion | 15.11 | $1.11 billion | $5.03 | 57.78 |
Cadence Design Systems has higher revenue and earnings than Riskified. Riskified 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 ratings for Riskified and Cadence Design Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Riskified | 2 | 3 | 2 | 0 | 2.00 |
| Cadence Design Systems | 0 | 3 | 13 | 0 | 2.81 |
Riskified currently has a consensus price target of $6.50, suggesting a potential upside of 5.26%. Cadence Design Systems has a consensus price target of $405.69, suggesting a potential upside of 39.58%. Given Cadence Design Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Cadence Design Systems is more favorable than Riskified.
Summary
Cadence Design Systems beats Riskified on 12 of the 14 factors compared between the two stocks.
About Riskified
Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.
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.
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