VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Monday, January 5, 2026

Stock Comparison

Cadence Design Systems, Inc. vs Emerson Electric Co.

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Cadence Design Systems, Inc.

CDNS · NASDAQ

Market cap (USD)$84.1B
Gross margin (TTM)87.8%
Operating margin (TTM)28.5%
Net margin (TTM)20.4%
SectorTechnology
IndustrySoftware - Application
CountryUS
Data as of2025-12-29
Moat score
84/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Cadence Design Systems, Inc.'s moat claims, evidence, and risks.

View CDNS analysis

Emerson Electric Co.

EMR · New York Stock Exchange

Market cap (USD)$76.4B
Gross margin (TTM)
Operating margin (TTM)
Net margin (TTM)
SectorIndustrials
Industry
CountryUS
Data as of2026-01-02
Moat score
70/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Emerson Electric Co.'s moat claims, evidence, and risks.

View EMR analysis

Comparison highlights

  • Moat score gap: Cadence Design Systems, Inc. leads (84 / 100 vs 70 / 100 for Emerson Electric Co.).
  • Segment focus: Cadence Design Systems, Inc. has 3 segments (71% in Core EDA); Emerson Electric Co. has 6 segments (24.2% in Final Control).
  • Moat breadth: Cadence Design Systems, Inc. has 8 moat types across 3 domains; Emerson Electric Co. has 10 across 4.

Primary market context

Cadence Design Systems, Inc.

Core EDA

Market

Electronic design automation tools for semiconductor IC design and verification (digital, custom/analog, signoff, functional verification)

Geography

Global

Customer

Semiconductor designers (fabless and IDMs) and system companies with in-house silicon teams

Role

Tool vendor / workflow platform

Revenue share

71%

Emerson Electric Co.

Final Control

Market

Industrial control valves, isolation/shutoff valves, pressure relief & safety valves, actuators and regulators

Geography

Global

Customer

Process & hybrid manufacturers

Role

Automation components supplier

Revenue share

24.2%

Side-by-side metrics

Cadence Design Systems, Inc.
Emerson Electric Co.
Ticker / Exchange
CDNS - NASDAQ
EMR - New York Stock Exchange
Market cap (USD)
$84.1B
$76.4B
Gross margin (TTM)
87.8%
n/a
Operating margin (TTM)
28.5%
n/a
Net margin (TTM)
20.4%
n/a
Sector
Technology
Industrials
Industry
Software - Application
n/a
HQ country
US
US
Primary segment
Core EDA
Final Control
Market structure
Oligopoly
Oligopoly
Market share
29%-31% (estimated)
n/a
HHI estimate
n/a
n/a
Pricing power
Strong
Strong
Moat score
84 / 100
70 / 100
Moat domains
Demand, Legal, Supply
Demand, Supply, Legal, Network
Last update
2025-12-29
2026-01-02

Moat coverage

Shared moat types

Data Workflow LockinSuite BundlingDesign In QualificationInstalled Base ConsumablesService Field Network

Cadence Design Systems, Inc. strengths

Long Term ContractsIP Choke PointCapex Knowhow Scale

Emerson Electric Co. strengths

Brand TrustCompliance AdvantageDistribution ControlEcosystem ComplementsInteroperability Hub

Segment mix

Cadence Design Systems, Inc. segments

Full profile >

Core EDA

Oligopoly

71%

Semiconductor IP

Oligopoly

13%

System Design and Analysis

Competitive

16%

Emerson Electric Co. segments

Full profile >

Final Control

Oligopoly

24.2%

Measurement & Analytical

Oligopoly

22.9%

Discrete Automation

Competitive

13.9%

Safety & Productivity

Competitive

7.5%

Control Systems & Software

Oligopoly

23.2%

Test & Measurement

Competitive

8.2%

Want the full wide moat stocks list?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

View the moat stocks list

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.