AKAM vs. CDNS: Akamai vs. Cadence Design Systems Stock Comparison
How do Akamai (AKAM) 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
Akamai (AKAM) and Cadence Design Systems (CDNS) both fall under the Software & Services industry group, but AKAM is classified in IT Services while CDNS is classified in Software.
| Profile Item | AKAM | CDNS |
|---|---|---|
| Name | Akamai Technologies, 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 | IT Services | Software |
| GICS Sub-Industry | Internet Services & Infrastructure | Application Software |
| Market Capitalization | 11.94 billion USD | 87.78 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | October 29, 1999 | June 10, 1987 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AKAM | CDNS |
|---|---|---|
| Total Return (1Y) | -2.77% | 3.07% |
| Total Return (3Y, Annualized) | -9.48% | 9.32% |
| Total Return (5Y, Annualized) | -5.72% | 12.93% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AKAM | CDNS |
|---|---|---|
| Volatility (1Y, Annualized) | 62.11% | 42.21% |
| Beta (5Y) | 0.69 | 1.09 |
| Max Drawdown (5Y) | -51.69% | -34.21% |
| Avg. Volume (3M) | 4.75M | 2.41M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AKAM | CDNS |
|---|---|---|
| Sharpe Ratio (1Y) | -0.11 | -0.03 |
| Sortino Ratio (1Y) | -0.17 | -0.04 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Akamai (AKAM) at 7.85% is closer to the peer norm — stronger capital efficiency for CDNS.
AKAM
Software & Services industry group
7.85%
- Max
- 53.85%
- Q3
- 17.90%
- AKAM
- 7.85%
- 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)
Cadence Design Systems (CDNS) at 22.52% retains a top-quartile share of revenue as profit, ahead of Akamai (AKAM) at 8.84%, which keeps about the industry-typical share.
AKAM
Software & Services industry group
8.84%
- Max
- 41.17%
- Q3
- 15.28%
- AKAM
- 8.84%
- 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)
Cadence Design Systems (CDNS) at 28.93% operates in the top operating margin quartile, ahead of Akamai (AKAM) at 9.88%, which runs around its industry’s norm.
AKAM
Software & Services industry group
9.88%
- Max
- 46.89%
- Q3
- 17.64%
- AKAM
- 9.88%
- 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 | AKAM | CDNS |
|---|---|---|
| ROE (TTM) | 7.85% | 22.87% |
| ROA (TTM) | 2.18% | 10.52% |
| Net Margin (TTM) | 8.84% | 22.52% |
| Operating Margin (TTM) | 9.88% | 28.93% |
| Gross Margin (TTM) | 56.39% | 85.68% |
Growth
Revenue Growth
Cadence Design Systems (CDNS) at 14.12% is around its peer norm for revenue growth, while Akamai (AKAM) at 5.44% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Both Akamai (AKAM) at -6.12% 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 | AKAM | CDNS |
|---|---|---|
| Revenue Growth (YoY) | 5.44% | 14.12% |
| Revenue Growth (3Y CAGR) | 5.18% | 14.14% |
| EPS Growth (YoY) | -6.12% | 5.45% |
| EPS Growth (3Y CAGR) | -1.98% | 9.53% |
Financial Strength
Current Ratio (MRQ)
Both Akamai (AKAM) at 2.13 and Cadence Design Systems (CDNS) at 1.36 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
AKAM
Software & Services industry group
2.13
- Max
- 5.11
- Q3
- 2.77
- AKAM
- 2.13
- Median
- 1.67
- Q1
- 1.01
- 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)
Cadence Design Systems (CDNS) at 0.41 carries an industry-typical debt-to-equity mix, while Akamai (AKAM) at 1.84 uses more debt funding than most peers.
AKAM
Software & Services industry group
1.84
- Max
- 2.52
- AKAM
- 1.84
- Q3
- 1.13
- 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 | AKAM | CDNS |
|---|---|---|
| Current Ratio (MRQ) | 2.13 | 1.36 |
| Debt / Equity (MRQ) | 1.84 | 0.41 |
| Net Debt / EBITDA | 5.78 | 0.57 |
Dividends
Dividend Yield (TTM)
Neither Akamai (AKAM) nor Cadence Design Systems (CDNS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
AKAM
Software & Services industry group
0.00%
- AKAM
- 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 Akamai (AKAM) nor Cadence Design Systems (CDNS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
AKAM
Software & Services industry group
0.00%
- AKAM
- 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 | AKAM | CDNS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Akamai (AKAM) at 32.33 is near its industry’s usual P/E ratio, while Cadence Design Systems (CDNS) at 63.60 sits in the richer quartile — CDNS needs stronger growth or earnings quality to justify the premium.
AKAM
Software & Services industry group
32.33
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- AKAM
- 32.33
- Q1
- 18.77
- 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)
Akamai (AKAM) at 2.72 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.
AKAM
Software & Services industry group
2.72
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- AKAM
- 2.72
- 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)
Akamai (AKAM) at 2.32 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.
AKAM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- AKAM
- 2.32
- 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 | AKAM | CDNS |
|---|---|---|
| P/E Ratio (TTM) | 32.33 | 63.60 |
| P/S Ratio (TTM) | 2.72 | 14.31 |
| P/B Ratio (MRQ) | 2.32 | 12.77 |
| Free Cash Flow Yield (TTM) | 1.51% | 1.99% |