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AFRM vs. CDNS: A Head-to-Head Stock Comparison

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Here’s a clear look at AFRM and CDNS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAFRMCDNS
Company NameAffirm Holdings, Inc.Cadence Design Systems, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsInformation Technology
GICS IndustryFinancial ServicesSoftware
Market Capitalization23.54 billion USD94.13 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJanuary 13, 2021June 10, 1987
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AFRM and CDNS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

AFRM vs. CDNS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAFRMCDNS
5-Day Price Return-4.95%-0.99%
13-Week Price Return40.50%7.85%
26-Week Price Return-2.38%16.64%
52-Week Price Return159.61%22.52%
Month-to-Date Return7.73%-5.24%
Year-to-Date Return21.28%14.97%
10-Day Avg. Volume5.47M1.49M
3-Month Avg. Volume6.45M1.92M
3-Month Volatility52.09%35.84%
Beta3.681.01

Profitability

Return on Equity (TTM)

AFRM

-2.22%

Financial Services Industry

Max
40.58%
Q3
20.06%
Median
10.67%
Q1
4.19%
Min
-10.31%

AFRM has a negative Return on Equity of -2.22%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

CDNS

21.28%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

CDNS’s Return on Equity of 21.28% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

AFRM vs. CDNS: A comparison of their Return on Equity (TTM) against their respective Financial Services and Software industry benchmarks.

Net Profit Margin (TTM)

AFRM

-2.33%

Financial Services Industry

Max
52.86%
Q3
25.58%
Median
12.23%
Q1
6.64%
Min
-9.92%

AFRM has a negative Net Profit Margin of -2.33%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

CDNS

19.88%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 19.88% places CDNS in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

AFRM vs. CDNS: A comparison of their Net Profit Margin (TTM) against their respective Financial Services and Software industry benchmarks.

Operating Profit Margin (TTM)

AFRM

-5.22%

Financial Services Industry

Max
77.28%
Q3
37.68%
Median
18.17%
Q1
9.27%
Min
-8.19%

AFRM has a negative Operating Profit Margin of -5.22%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

CDNS

30.24%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

An Operating Profit Margin of 30.24% places CDNS in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AFRM vs. CDNS: A comparison of their Operating Profit Margin (TTM) against their respective Financial Services and Software industry benchmarks.

Profitability at a Glance

SymbolAFRMCDNS
Return on Equity (TTM)-2.22%21.28%
Return on Assets (TTM)-0.61%11.04%
Net Profit Margin (TTM)-2.33%19.88%
Operating Profit Margin (TTM)-5.22%30.24%
Gross Profit Margin (TTM)--85.57%

Financial Strength

Current Ratio (MRQ)

AFRM

4.49

Financial Services Industry

Max
4.58
Q3
2.59
Median
1.33
Q1
0.69
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

CDNS

2.82

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

CDNS’s Current Ratio of 2.82 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AFRM vs. CDNS: A comparison of their Current Ratio (MRQ) against their respective Financial Services and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AFRM

2.49

Financial Services Industry

Max
4.96
Q3
2.10
Median
0.57
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

CDNS

0.50

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

CDNS’s Debt-to-Equity Ratio of 0.50 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AFRM vs. CDNS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Financial Services and Software industry benchmarks.

Interest Coverage Ratio (TTM)

AFRM

-3.76

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

CDNS

39.06

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

CDNS’s Interest Coverage Ratio of 39.06 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AFRM vs. CDNS: A comparison of their Interest Coverage Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Financial Strength at a Glance

SymbolAFRMCDNS
Current Ratio (MRQ)4.492.82
Quick Ratio (MRQ)4.412.33
Debt-to-Equity Ratio (MRQ)2.490.50
Interest Coverage Ratio (TTM)-3.7639.06

Growth

Revenue Growth

AFRM vs. CDNS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AFRM vs. CDNS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AFRM

0.00%

Financial Services Industry

Max
8.18%
Q3
3.60%
Median
1.56%
Q1
0.00%
Min
0.00%

AFRM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

CDNS

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

CDNS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

AFRM vs. CDNS: A comparison of their Dividend Yield (TTM) against their respective Financial Services and Software industry benchmarks.

Dividend Payout Ratio (TTM)

AFRM

0.00%

Financial Services Industry

Max
155.56%
Q3
63.71%
Median
18.08%
Q1
0.00%
Min
0.00%

AFRM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

CDNS

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

CDNS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

AFRM vs. CDNS: A comparison of their Dividend Payout Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Dividend at a Glance

SymbolAFRMCDNS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

AFRM

--

Financial Services Industry

Max
63.23
Q3
32.10
Median
14.41
Q1
10.81
Min
0.37

P/E Ratio data for AFRM is currently unavailable.

CDNS

92.61

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

CDNS’s P/E Ratio of 92.61 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AFRM vs. CDNS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

AFRM

8.81

Financial Services Industry

Max
11.16
Q3
5.45
Median
2.61
Q1
1.25
Min
0.04

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

CDNS

18.41

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

CDNS’s P/S Ratio of 18.41 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AFRM vs. CDNS: A comparison of their Price-to-Sales Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

AFRM

5.03

Financial Services Industry

Max
7.09
Q3
3.79
Median
1.46
Q1
0.83
Min
0.04

AFRM’s P/B Ratio of 5.03 is in the upper tier for the Financial Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

CDNS

16.81

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

CDNS’s P/B Ratio of 16.81 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AFRM vs. CDNS: A comparison of their Price-to-Book Ratio (MRQ) against their respective Financial Services and Software industry benchmarks.

Valuation at a Glance

SymbolAFRMCDNS
Price-to-Earnings Ratio (TTM)--92.61
Price-to-Sales Ratio (TTM)8.8118.41
Price-to-Book Ratio (MRQ)5.0316.81
Price-to-Free Cash Flow Ratio (TTM)38.6859.12