Critical Contrast: OptimizeRx (NASDAQ:OPRX) vs. Cadence Design Systems (NASDAQ:CDNS)

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

Institutional & Insider Ownership

76.5% of OptimizeRx shares are held by institutional investors. Comparatively, 84.9% of Cadence Design Systems shares are held by institutional investors. 5.6% of OptimizeRx shares are held by insiders. Comparatively, 0.5% of Cadence Design Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares OptimizeRx 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
OptimizeRx	$109.43 million	1.23	$5.13 million	$0.26	27.58
Cadence Design Systems	$5.30 billion	16.21	$1.11 billion	$4.06	76.61

Cadence Design Systems has higher revenue and earnings than OptimizeRx. OptimizeRx 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.

Risk and Volatility

OptimizeRx has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	4.69%	10.61%	7.54%
Cadence Design Systems	20.93%	29.34%	15.68%

Analyst Recommendations

This is a summary of recent ratings and price targets for OptimizeRx and Cadence Design Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	1	6	1	2.78
Cadence Design Systems	0	3	15	0	2.83

OptimizeRx currently has a consensus target price of $17.57, suggesting a potential upside of 145.07%. Cadence Design Systems has a consensus target price of $376.50, suggesting a potential upside of 21.05%. Given OptimizeRx’s higher probable upside, equities analysts clearly believe OptimizeRx is more favorable than Cadence Design Systems.

Summary

Cadence Design Systems beats OptimizeRx on 11 of the 15 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

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.