Analyzing Bridgeline Digital (BLIN) & Cadence Design Systems (CDNS)

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgeline Digital 0 0 0 0 N/A
Cadence Design Systems 0 4 4 0 2.50

Cadence Design Systems has a consensus target price of $53.71, indicating a potential downside of 17.34%. Given Cadence Design Systems’ higher probable upside, analysts plainly believe Cadence Design Systems is more favorable than Bridgeline Digital.

Earnings & Valuation

This table compares Bridgeline Digital and Cadence Design Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridgeline Digital $13.57 million 0.22 -$7.21 million N/A N/A
Cadence Design Systems $2.14 billion 8.55 $345.78 million $1.23 52.83

Cadence Design Systems has higher revenue and earnings than Bridgeline Digital.

Profitability

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

Net Margins Return on Equity Return on Assets
Bridgeline Digital -98.08% -127.66% -62.84%
Cadence Design Systems 16.17% 28.36% 14.18%

Risk & Volatility

Bridgeline Digital has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Insider and Institutional Ownership

6.4% of Bridgeline Digital shares are owned by institutional investors. Comparatively, 87.7% of Cadence Design Systems shares are owned by institutional investors. 8.5% of Bridgeline Digital shares are owned by insiders. Comparatively, 2.3% of Cadence Design Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Cadence Design Systems beats Bridgeline Digital on 9 of the 11 factors compared between the two stocks.

About Bridgeline Digital

Bridgeline Digital, Inc. operates as a digital engagement company in the United States. The company's Bridgeline's Unbound platform enables companies and developers to create Websites, Web applications, and online stores. It offers Bridgeline Unbound Experience Manager, a marketing automation engine and content management system; Bridgeline Unbound Content Manager that enables non-technical users to create, edit, and publish content via a browser-based interface; and Bridgeline Unbound Commerce, an online B2B and B2C commerce solution that allows users to manage domestic and international commerce initiatives. The company also provides Bridgeline Unbound Marketing, an online marketing management solution that helps marketers drive to their sites through personalized and targeted marketing automation flows; and Bridgeline Unbound Insights to manage, measure, and optimize Web properties by recording detailed events and mining data for statistical analysis. In addition, it offers Bridgeline Unbound Social, a social media management solution that empowers customers to set up customized watch lists; and Bridgeline Unbound Franchises, a Web content management and e-commerce platform to multi-unit organizations and franchises. Further, the company provides digital strategy, Web design and development, usability engineering, information architecture, and search engine optimization services; application monitoring, emergency response, version control, load balancing, managed firewall security, and virus protection services; and shared, dedicated, and Software as a Service hosting services. It serves vertical markets, such as financial services, retail brand names, health services and life sciences, technology, credit unions and regional banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was founded in 2000 and is based in Burlington, 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 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.

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