Cadence Design Systems (CDNS) and Concur Technologies (CNQR) Critical Analysis

Concur Technologies (NASDAQ: CNQR) and Cadence Design Systems (NASDAQ:CDNS) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

84.8% of Cadence Design Systems shares are held by institutional investors. 2.6% of Cadence Design Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Concur Technologies and Cadence Design Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Concur Technologies 0 0 0 0 N/A
Cadence Design Systems 1 3 3 0 2.29

Cadence Design Systems has a consensus price target of $38.75, suggesting a potential downside of 9.19%.

Profitability

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

Net Margins Return on Equity Return on Assets
Concur Technologies N/A N/A N/A
Cadence Design Systems 13.45% 29.00% 11.60%

Valuation & Earnings

This table compares Concur Technologies and Cadence Design Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Concur Technologies N/A N/A N/A ($2.09) N/A
Cadence Design Systems $1.82 billion 6.63 $203.08 million $0.93 45.88

Cadence Design Systems has higher revenue and earnings than Concur Technologies. Concur Technologies 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.

Summary

Cadence Design Systems beats Concur Technologies on 8 of the 8 factors compared between the two stocks.

Concur Technologies Company Profile

Concur Technologies, Inc. (Concur) is a provider of integrated travel and expense management solutions for companies of all industries, sizes, and geographies. The Company delivers cloud computing software solutions. It provides cloud computing software solutions primarily on a subscription basis. The Company’s easy-to-use cloud computing solutions help companies and their employees control costs, save time, and boost productivity by streamlining the expense management, travel procurement, itinerary management, and invoice management processes. By capturing and reporting on activity throughout the travel and expense management process, its solutions provide detailed information to help its customers effectively negotiate with vendors, create budgets, and manage compliance. As of September 30, 2013, the Company had over 20,000 customers in over 150 countries.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc. provides solutions that enable its customers to design electronic products. The Company’s product categories include Functional Verification, Digital integrated circuits (IC) Design and Signoff, Custom IC Design and Verification, System Interconnect and Analysis, and intellectual property (IP). Functional verification products are used to verify that the circuitry or the software designed will perform as intended. Digital IC design offerings are used to create representations of a digital circuit or an IC that can be verified for correctness prior to implementation. Custom IC design and verification offerings are used to create schematic and physical representations of circuits down to the transistor level for analog and memory designs. System Interconnect and Analysis offerings are used to develop printed circuit boards and IC packages. Design IP offerings consist of functional blocks, which customers integrate into their ICs for the development process.

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