Which is better, CDNS or LITE?

On the Buffett-Fit framework, Cadence Design Systems, Inc. (CDNS) currently grades higher than LITE — 78/100 (B grade) vs 27/100 (F). That said, "better" depends on which framework you trust — CDNS wins on Warren Buffett, Benjamin Graham, Philip Fisher, Peter Lynch, Joel Greenblatt, Charlie Munger, and Terry Smith; LITE wins on none. The full pillar breakdown is on this page.

Should I buy CDNS or LITE?

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

On the Buffett-style value-investing framework, CDNS currently grades higher — 78/100 vs 27/100, a 51-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 LITE 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); LITE scores 27/100 (F grade). The "Where each wins" section on this page breaks down which pillar each stock dominates.

Which has the stronger moat, CDNS or LITE?

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

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 LITE both Technology stocks?

Yes — both Cadence Design Systems, Inc. (CDNS) and Lumentum Holdings Inc. (LITE) 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 LITE 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

Lumentum Holdings

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

LITE

Lumentum Holdings

Market cap

$73.67B

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	LITE	Winner
Warren Buffett	78B	27F	CDNS
Benjamin Graham	84A	62D	CDNS
Philip Fisher	84A	31F	CDNS
Peter Lynch	78B	22F	CDNS
Joel Greenblatt	58C	3F	CDNS
Charlie Munger	80A	35D	CDNS
Terry Smith	80A	21F	CDNS

Side-by-side metrics

Metric	CDNS	LITE
Market cap	$103.04B	$73.67B
P/E (TTM)	80.7x	157.8x
EV/EBIT	59.1x	-
ROIC (TTM)	12.19%	3.7%
Gross margin	88.85%	37.71%
Net margin	21.18%	17.68%
Revenue CAGR 5y	15.38%	-1.0%
EPS CAGR 5y	12.65%	-39.25%
Debt / Equity	0.5x	1.1x
Dividend yield	0.0%	0.0%

Where each one wins

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

CDNS leads on

EPS CAGR 5y12.65%vs -39.25%+132%
Revenue CAGR 5y15.38%vs -1.0%+107%
ROIC (TTM)12.19%vs 3.7%+70%
Debt / Equity0.5xvs 1.1x+58%

LITE leads on

EV/EBIT-vs 59.1x+114%

More like CDNS

CDNS vs LRCX CDNS vs ADBE CDNS vs AMAT CDNS vs KARO CDNS vs ANET CDNS vs ATEN

More like LITE

LITE vs LRCX LITE vs ADBE LITE vs AMAT LITE vs KARO LITE vs ANET LITE vs ATEN

Read the full Buffett-Brain analysis for CDNS Read the full Buffett-Brain analysis for LITE

Related on invest-like

Strongest Moat Highest ROIC Warren Buffett strategy Economic Moat

Key terms in this analysis

ROIC Free Cash Flow (FCF)Economic Moat P/E Ratio Margin of Safety Quality Score

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

Stock comparison

Cadence Design Systems

Lumentum Holdings

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

CDNS

Cadence Design Systems

Market cap

$103.04B

Sector

Technology

LITE

Lumentum Holdings

Market cap

$73.67B

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	LITE	Winner
Warren Buffett	78B	27F	CDNS
Benjamin Graham	84A	62D	CDNS
Philip Fisher	84A	31F	CDNS
Peter Lynch	78B	22F	CDNS
Joel Greenblatt	58C	3F	CDNS
Charlie Munger	80A	35D	CDNS
Terry Smith	80A	21F	CDNS

Side-by-side metrics

Metric	CDNS	LITE
Market cap	$103.04B	$73.67B
P/E (TTM)	80.7x	157.8x
EV/EBIT	59.1x	-
ROIC (TTM)	12.19%	3.7%
Gross margin	88.85%	37.71%
Net margin	21.18%	17.68%
Revenue CAGR 5y	15.38%	-1.0%
EPS CAGR 5y	12.65%	-39.25%
Debt / Equity	0.5x	1.1x
Dividend yield	0.0%	0.0%

Where each one wins

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

CDNS leads on

EPS CAGR 5y12.65%vs -39.25%+132%
Revenue CAGR 5y15.38%vs -1.0%+107%
ROIC (TTM)12.19%vs 3.7%+70%
Debt / Equity0.5xvs 1.1x+58%

LITE leads on

EV/EBIT-vs 59.1x+114%

More like CDNS

CDNS vs LRCX CDNS vs ADBE CDNS vs AMAT CDNS vs KARO CDNS vs ANET CDNS vs ATEN

More like LITE

LITE vs LRCX LITE vs ADBE LITE vs AMAT LITE vs KARO LITE vs ANET LITE vs ATEN

Read the full Buffett-Brain analysis for CDNS Read the full Buffett-Brain analysis for LITE

Related on invest-like

Strongest Moat Highest ROIC Warren Buffett strategy Economic Moat

Key terms in this analysis

ROIC Free Cash Flow (FCF)Economic Moat P/E Ratio Margin of Safety Quality Score

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