Which is better, CDNS or TSM?

On the Buffett-Fit framework, Cadence Design Systems, Inc. (CDNS) currently grades higher than TSM — 78/100 (B grade) vs 67/100 (B). That said, "better" depends on which framework you trust — CDNS wins on Warren Buffett, Benjamin Graham, Philip Fisher, Peter Lynch, Charlie Munger, and Terry Smith; TSM wins on Joel Greenblatt. The full pillar breakdown is on this page.

Should I buy CDNS or TSM?

This page is an educational comparison, not investment advice. Both CDNS and TSM 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 TSM for value investing?

On the Buffett-style value-investing framework, CDNS currently grades higher — 78/100 vs 67/100, a 11-point gap. The gap is driven by which pillars each stock passes; the table on this page shows moat, durability, management, financial health, and valuation side-by-side.

What's the difference between CDNS and TSM 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); TSM scores 67/100 (B grade). The "Where each wins" section on this page breaks down which pillar each stock dominates.

Which has the stronger moat, CDNS or TSM?

Moat strength is one of the five pillars in the Buffett-Fit score on this page. CDNS and TSM 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 TSM?

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 TSM both Technology stocks?

Yes — both Cadence Design Systems, Inc. (CDNS) and Taiwan Semiconductor Manufacturing Company Limited (TSM) 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 TSM 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

Taiwan Semiconductor Manufacturing Company Limited

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

TSM

Taiwan Semiconductor Manufacturing Company Limited

Market cap

$2.1T

Sector

Technology

Overall winner

Cadence Design Systems CDNS

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

Fit scores by strategy

Strategy	CDNS	TSM	Winner
Warren Buffett	78B	67B	CDNS
Benjamin Graham	84A	80A	CDNS
Philip Fisher

Side-by-side metrics

Metric	CDNS	TSM
Market cap	$103.04B	$2.1T
P/E (TTM)	80.7x	30.5x
EV/EBIT	59.1x	29.0x
ROIC (TTM)	12.19%	25.8%
Gross margin	88.85%	61.87%
Net margin	21.18%	47.0%
Revenue CAGR 5y	15.38%

Where each one wins

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

CDNS leads on

Gross margin88.85%vs 61.87%+30%

TSM leads on

Dividend yield0.91%vs 0.0%+100%
Market cap$2.1Tvs $103.04B+95%

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Strongest Moat Highest ROIC Warren Buffett strategy Economic Moat

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