APP vs. CDNS: AppLovin vs. Cadence Design Systems Stock Comparison

Company Profile

AppLovin (APP) 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.

Cadence Design Systems (CDNS) has more than two decades of public-market history since June 10, 1987, whereas AppLovin (APP) listed on April 15, 2021 and has a much shorter record to draw on.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

AppLovin (APP) carries a highly aggressive beta of 2.25, indicating much higher sensitivity to broad-market moves, whereas Cadence Design Systems (CDNS) is closer to market-like at 1.09 — a noticeable difference in market-sensitivity profile.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both companies show strong equity returns, but AppLovin (APP) at 210.09% is the standout with ROE above its industry range; Cadence Design Systems (CDNS) at 22.87% also sits in the top quartile.

AppLovin (APP) at 65.89% keeps the most of each sales dollar — above its industry’s net margin range — and Cadence Design Systems (CDNS) at 22.52% also retains a top-quartile share.

AppLovin (APP) at 78.22% shows unusually strong operating efficiency — above its industry’s operating margin range — and Cadence Design Systems (CDNS) at 28.93% also operates in the top quartile.

Profitability Metrics

Growth

AppLovin (APP) at 69.99% clears its industry range for revenue growth, far stronger top-line momentum than Cadence Design Systems (CDNS) at 14.12%, which is closer to a typical peer reading.

AppLovin (APP) at 115.23% sits in the top EPS growth quartile, while Cadence Design Systems (CDNS) at 5.45% is closer to the peer norm — faster per-share earnings growth for APP.

Growth Metrics

Financial Strength

Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while AppLovin (APP) at 3.81 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Both AppLovin (APP) at 1.07 and Cadence Design Systems (CDNS) at 0.41 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

Financial Strength Metrics

Dividends

Neither AppLovin (APP) nor Cadence Design Systems (CDNS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

Neither AppLovin (APP) nor Cadence Design Systems (CDNS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

Dividend Metrics

Valuation

AppLovin (APP) at 26.34 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.

Both AppLovin (APP) at 17.04 and Cadence Design Systems (CDNS) at 14.31 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

Both look rich against book: Cadence Design Systems (CDNS) at 12.77 sits in the upper P/B ratio quartile, and AppLovin (APP) at 39.29 prices even higher, above its industry range.

Valuation Metrics