Which is better, CDNS or KLAC?

On the Buffett-Fit framework, KLA Corporation (KLAC) currently grades higher than CDNS — 80/100 (A grade) vs 78/100 (B). That said, "better" depends on which framework you trust — CDNS wins on none; KLAC wins on Warren Buffett, Benjamin Graham, Philip Fisher, Joel Greenblatt, Charlie Munger, and Terry Smith. The full pillar breakdown is on this page.

Should I buy CDNS or KLAC?

This page is an educational comparison, not investment advice. Both CDNS and KLAC are graded against the same Buffett 5-pillar framework (moat, earnings durability, management quality, financial health, valuation) plus six other documented investor frameworks. Read the side-by-side breakdown to see which one matches the criteria you care about most — and always do your own research before making any investment decision.

Is CDNS better than KLAC for value investing?

The two are close on the headline Buffett-Fit score (78/100 vs 80/100), so "better for value investing" depends on which pillar you weight most. The five Buffett pillars + six other frameworks are broken down side-by-side on this page so you can pick the one that fits your style.

What's the difference between CDNS and KLAC on Warren Buffett's framework?

Both stocks are evaluated on the same five pillars: economic moat (durable competitive advantage), earnings durability (consistent profitability), management quality (capital allocation), financial health (conservative balance sheet), and valuation (margin of safety). CDNS currently scores 78/100 (B grade); KLAC scores 80/100 (A grade). The "Where each wins" section on this page breaks down which pillar each stock dominates.

Which has the stronger moat, CDNS or KLAC?

Moat strength is one of the five pillars in the Buffett-Fit score on this page. CDNS and KLAC are each scored on ROIC sustainability, gross-margin durability, and qualitative signals like brand strength, switching costs, network effects, and regulatory barriers. The pillar breakdown on this page shows the moat sub-score side-by-side so you can see which one has the more durable competitive advantage.

Which is more undervalued, CDNS or KLAC?

Valuation is one of the five Buffett-Fit pillars on this page. Both stocks are scored on owner-earnings yield, price-to-intrinsic-value vs the underlying compounding rate, and the margin of safety relative to a conservative DCF. The valuation sub-score in the table below tells you which one currently trades at a more attractive price relative to its underlying business quality.

Are CDNS and KLAC both Technology stocks?

Yes — both Cadence Design Systems, Inc. (CDNS) and KLA Corporation (KLAC) operate in the Technology sector. That makes this a direct sector-peer comparison, which is the apples-to-apples way to use the Buffett-Fit framework: the score weighs each stock against its sector's specific quality and valuation benchmarks (sector-relative bonus), so the cross-stock comparison isn't distorted by inter-sector base-rate differences.

Is this CDNS vs KLAC comparison investment advice?

No. This page is an educational pattern-match against documented public frameworks (Buffett, Graham, Fisher, Lynch, Greenblatt, Munger, Smith), not personalised investment advice. The scores reflect how closely each stock matches each framework's documented criteria — they are not buy/hold/sell recommendations. Always do your own research and consult a licensed financial adviser for personalised advice.

Stock comparison

Cadence Design Systems

KLA

Scored across Buffett, Graham, Lynch and Greenblatt - plus a side-by-side metric table covering valuation, quality, growth and balance sheet.

CDNS

Market cap

$103.04B

Sector

Technology

KLAC

KLA

Market cap

$248.83B

Sector

Technology

Overall winner

KLA KLAC

Wins on the combined sum of fit scores across all four strategies. Per-strategy breakdown below.

Fit scores by strategy

Strategy	CDNS	KLAC	Winner
Warren Buffett	78B	80A	KLAC
Benjamin Graham	84A	94A	KLAC
Philip Fisher	84A	90A	KLAC
Peter Lynch	78B	78B	Tie
Joel Greenblatt	58C	78C	KLAC
Charlie Munger	80A	93A	KLAC
Terry Smith	80A	94A	KLAC

Side-by-side metrics

Metric	CDNS	KLAC
Market cap	$103.04B	$248.83B
P/E (TTM)	80.7x	51.8x
EV/EBIT	59.1x	46.9x
ROIC (TTM)	12.19%	36.29%
Gross margin	88.85%	61.75%
Net margin	21.18%	35.66%
Revenue CAGR 5y	15.38%	15.13%
EPS CAGR 5y	12.65%	22.65%
Debt / Equity	0.5x	1.1x
Dividend yield	0.0%	0.43%

Where each one wins

The metrics with the biggest gap between the two - sorted so the most decisive edges read first.

CDNS leads on

Debt / Equity0.5xvs 1.1x+55%
Gross margin88.85%vs 61.75%+30%

KLAC leads on

Dividend yield0.43%vs 0.0%+100%
ROIC (TTM)36.29%vs 12.19%+66%
Market cap$248.83Bvs $103.04B+59%
EPS CAGR 5y22.65%vs 12.65%+44%

Educational tool. Fit scores are deterministic projections from public financials onto each investor's published criteria - not personal recommendations or advice.

Cadence Design Systems

KLA

Fit scores by strategy

Side-by-side metrics

Where each one wins

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Key terms in this analysis