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

Company Overview

ARM dwarfs CDNS in market cap, clocking in at 137.89 billion USD—about 1.59 times the 86.70 billion USD of its counterpart.

ARM rides a wilder wave with a beta of 4.41, hinting at bigger swings than CDNS’s steadier 1.04.

Worth noting: ARM flies the ADR flag, tying it to a foreign outfit on U.S. soil, while CDNS sticks to plain-vanilla U.S. listing.

Performance Comparison

This chart compares the performance of ARM and CDNS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ARM and CDNS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

• ARM stands out with a P/E of 170.26, far exceeding conventional benchmarks. This elevated figure means its stock price is disproportionately large compared to its earnings over the past twelve months, often reflecting strong investor optimism about its future. Meanwhile, CDNS at 79.86 aligns with more typical earnings multiples.

Dividend Comparison

Neither ARM nor CDNS pays dividends, suggesting both reinvest all profits into growth—likely expansion or innovation—favoring long-term value over immediate income.

Financial Strength Metrics Comparison

This section dives into the financial resilience of ARM and CDNS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

• ARM posts an interest coverage of “--”, hinting at interest costs so low they’re negligible—often from scant debt or dirt-cheap rates—while CDNS at 21.78 handles interest with solid earnings.