APP vs. CDNS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and CDNS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | APP | CDNS |
|---|---|---|
| Company Name | AppLovin Corporation | Cadence Design Systems, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Software |
| Market Capitalization | 213.00 billion USD | 95.37 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | April 15, 2021 | June 10, 1987 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of APP 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.
Historical Performance at a Glance
| Symbol | APP | CDNS |
|---|---|---|
| 5-Day Price Return | -7.89% | 0.79% |
| 13-Week Price Return | 78.52% | 8.39% |
| 26-Week Price Return | 140.36% | 40.61% |
| 52-Week Price Return | 349.95% | 33.15% |
| Month-to-Date Return | -12.36% | -0.36% |
| Year-to-Date Return | 94.45% | 16.49% |
| 10-Day Avg. Volume | 7.94M | 1.32M |
| 3-Month Avg. Volume | 6.96M | 1.72M |
| 3-Month Volatility | 62.37% | 34.80% |
| Beta | 2.57 | 1.05 |
Profitability
Return on Equity (TTM)
APP
257.74%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
APP’s Return on Equity of 257.74% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
CDNS
21.28%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
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.
Net Profit Margin (TTM)
APP
45.72%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 45.72% places APP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
CDNS
19.88%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
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.
Operating Profit Margin (TTM)
APP
52.02%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
An Operating Profit Margin of 52.02% places APP 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.
CDNS
30.24%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
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.
Profitability at a Glance
| Symbol | APP | CDNS |
|---|---|---|
| Return on Equity (TTM) | 257.74% | 21.28% |
| Return on Assets (TTM) | 42.29% | 11.04% |
| Net Profit Margin (TTM) | 45.72% | 19.88% |
| Operating Profit Margin (TTM) | 52.02% | 30.24% |
| Gross Profit Margin (TTM) | 80.87% | 85.57% |
Financial Strength
Current Ratio (MRQ)
APP
2.74
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
APP’s Current Ratio of 2.74 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.
CDNS
2.82
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
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.
Debt-to-Equity Ratio (MRQ)
APP
3.01
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.01, APP operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
CDNS
0.50
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- 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.
Interest Coverage Ratio (TTM)
APP
6.44
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
APP’s Interest Coverage Ratio of 6.44 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
CDNS
39.06
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
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.
Financial Strength at a Glance
| Symbol | APP | CDNS |
|---|---|---|
| Current Ratio (MRQ) | 2.74 | 2.82 |
| Quick Ratio (MRQ) | 2.54 | 2.33 |
| Debt-to-Equity Ratio (MRQ) | 3.01 | 0.50 |
| Interest Coverage Ratio (TTM) | 6.44 | 39.06 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
APP
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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
- 0.22%
- Q3
- 0.11%
- 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.
Dividend Payout Ratio (TTM)
APP
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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
- 3.29%
- Q3
- 2.41%
- 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.
Dividend at a Glance
| Symbol | APP | CDNS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
APP
87.67
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
APP’s P/E Ratio of 87.67 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.
CDNS
94.22
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
CDNS’s P/E Ratio of 94.22 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.
Price-to-Sales Ratio (TTM)
APP
40.08
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
With a P/S Ratio of 40.08, APP trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
CDNS
18.73
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
CDNS’s P/S Ratio of 18.73 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.
Price-to-Book Ratio (MRQ)
APP
101.50
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
At 101.50, APP’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
CDNS
16.81
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- 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.
Valuation at a Glance
| Symbol | APP | CDNS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 87.67 | 94.22 |
| Price-to-Sales Ratio (TTM) | 40.08 | 18.73 |
| Price-to-Book Ratio (MRQ) | 101.50 | 16.81 |
| Price-to-Free Cash Flow Ratio (TTM) | 73.57 | 60.15 |