ADBE vs. CDNS: Adobe vs. Cadence Design Systems Stock Comparison
How do Adobe (ADBE) and Cadence Design Systems (CDNS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Adobe (ADBE) and Cadence Design Systems (CDNS) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | ADBE | CDNS |
|---|---|---|
| Name | Adobe Inc. | Cadence Design Systems, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Application Software |
| Market Capitalization | 93.14 billion USD | 87.78 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | August 13, 1986 | June 10, 1987 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| Total Return (1Y) | -27.09% | 3.07% |
| Total Return (3Y, Annualized) | -25.55% | 9.32% |
| Total Return (5Y, Annualized) | -18.62% | 12.93% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| Volatility (1Y, Annualized) | 41.62% | 42.21% |
| Beta (5Y) | 1.38 | 1.09 |
| Max Drawdown (5Y) | -71.90% | -34.21% |
| Avg. Volume (3M) | 4.61M | 2.41M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| Sharpe Ratio (1Y) | -0.75 | -0.03 |
| Sortino Ratio (1Y) | -1.04 | -0.04 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Adobe (ADBE) at 61.90% is the standout with ROE above its industry range; Cadence Design Systems (CDNS) at 22.87% also sits in the top quartile.
ADBE
Software & Services industry group
61.90%
- ADBE
- 61.90%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
CDNS
Software & Services industry group
22.87%
- Max
- 53.85%
- CDNS
- 22.87%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
For every dollar of sales, both Adobe (ADBE) at 28.05% and Cadence Design Systems (CDNS) at 22.52% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
ADBE
Software & Services industry group
28.05%
- Max
- 41.17%
- ADBE
- 28.05%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
CDNS
Software & Services industry group
22.52%
- Max
- 41.17%
- CDNS
- 22.52%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Adobe (ADBE) at 34.82% and Cadence Design Systems (CDNS) at 28.93% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
ADBE
Software & Services industry group
34.82%
- Max
- 46.89%
- ADBE
- 34.82%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
CDNS
Software & Services industry group
28.93%
- Max
- 46.89%
- CDNS
- 28.93%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| ROE (TTM) | 61.90% | 22.87% |
| ROA (TTM) | 20.08% | 10.52% |
| Net Margin (TTM) | 28.05% | 22.52% |
| Operating Margin (TTM) | 34.82% | 28.93% |
| Gross Margin (TTM) | 89.25% | 85.68% |
Growth
Revenue Growth
Both Adobe (ADBE) at 10.53% and Cadence Design Systems (CDNS) at 14.12% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Adobe (ADBE) at 35.11% and Cadence Design Systems (CDNS) at 5.45% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| Revenue Growth (YoY) | 10.53% | 14.12% |
| Revenue Growth (3Y CAGR) | 10.52% | 14.14% |
| EPS Growth (YoY) | 35.11% | 5.45% |
| EPS Growth (3Y CAGR) | 18.25% | 9.53% |
Financial Strength
Current Ratio (MRQ)
Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while Adobe (ADBE) at 0.77 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for ADBE.
ADBE
Software & Services industry group
0.77
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- ADBE
- 0.77
- Min
- 0.03
CDNS
Software & Services industry group
1.36
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- CDNS
- 1.36
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Adobe (ADBE) at 0.58 and Cadence Design Systems (CDNS) at 0.41 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
ADBE
Software & Services industry group
0.58
- Max
- 2.52
- Q3
- 1.13
- ADBE
- 0.58
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
CDNS
Software & Services industry group
0.41
- Max
- 2.52
- Q3
- 1.13
- CDNS
- 0.41
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| Current Ratio (MRQ) | 0.77 | 1.36 |
| Debt / Equity (MRQ) | 0.58 | 0.41 |
| Net Debt / EBITDA | 0.12 | 0.57 |
Dividends
Dividend Yield (TTM)
Neither Adobe (ADBE) nor Cadence Design Systems (CDNS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
ADBE
Software & Services industry group
0.00%
- ADBE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CDNS
Software & Services industry group
0.00%
- CDNS
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Adobe (ADBE) nor Cadence Design Systems (CDNS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
ADBE
Software & Services industry group
0.00%
- ADBE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CDNS
Software & Services industry group
0.00%
- CDNS
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Adobe (ADBE) at 13.36 sits in the cheaper P/E ratio quartile, while Cadence Design Systems (CDNS) at 63.60 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.
ADBE
Software & Services industry group
13.36
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ADBE
- 13.36
- Min
- 6.69
CDNS
Software & Services industry group
63.60
- Max
- 112.94
- CDNS
- 63.60
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Adobe (ADBE) at 3.59 is priced about in line with its industry on P/S ratio, while Cadence Design Systems (CDNS) at 14.31 sits in the pricier quartile — CDNS costs more per dollar of sales.
ADBE
Software & Services industry group
3.59
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- ADBE
- 3.59
- Q1
- 2.23
- Min
- 0.02
CDNS
Software & Services industry group
14.31
- Max
- 17.91
- CDNS
- 14.31
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Adobe (ADBE) at 7.95 is valued about in line with its industry on P/B ratio, while Cadence Design Systems (CDNS) at 12.77 carries an above-peer premium to book — CDNS is pricier on assets.
ADBE
Software & Services industry group
7.95
- Max
- 16.63
- Q3
- 8.50
- ADBE
- 7.95
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
CDNS
Software & Services industry group
12.77
- Max
- 16.63
- CDNS
- 12.77
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | ADBE | CDNS |
|---|---|---|
| P/E Ratio (TTM) | 13.36 | 63.60 |
| P/S Ratio (TTM) | 3.59 | 14.31 |
| P/B Ratio (MRQ) | 7.95 | 12.77 |
| Free Cash Flow Yield (TTM) | 10.03% | 1.99% |