CDNS vs. CHKP: Cadence Design Systems vs. Check Point Software Stock Comparison
How do Cadence Design Systems (CDNS) and Check Point Software (CHKP) 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
Cadence Design Systems (CDNS) and Check Point Software (CHKP) both belong to the Software industry, though CDNS is classified under Application Software while CHKP falls under Systems Software.
| Profile Item | CDNS | CHKP |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Check Point Software Technologies Ltd. |
| Country/Region | United States | Israel |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Systems Software |
| Market Capitalization | 87.78 billion USD | 14.72 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | June 28, 1996 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| Total Return (1Y) | 3.07% | -27.87% |
| Total Return (3Y, Annualized) | 9.32% | 1.46% |
| Total Return (5Y, Annualized) | 12.93% | 4.07% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 40.93% |
| Beta (5Y) | 1.09 | 0.43 |
| Max Drawdown (5Y) | -34.21% | -51.83% |
| Avg. Volume (3M) | 2.41M | 1.19M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | -0.79 |
| Sortino Ratio (1Y) | -0.04 | -0.97 |
Profitability
ROE (TTM)
Both Cadence Design Systems (CDNS) at 22.87% and Check Point Software (CHKP) at 30.61% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.
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%
CHKP
Software & Services industry group
30.61%
- Max
- 53.85%
- CHKP
- 30.61%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
For every dollar of sales, both Cadence Design Systems (CDNS) at 22.52% and Check Point Software (CHKP) at 31.74% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
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%
CHKP
Software & Services industry group
31.74%
- Max
- 41.17%
- CHKP
- 31.74%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Cadence Design Systems (CDNS) at 28.93% and Check Point Software (CHKP) at 26.46% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
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%
CHKP
Software & Services industry group
26.46%
- Max
- 46.89%
- CHKP
- 26.46%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| ROE (TTM) | 22.87% | 30.61% |
| ROA (TTM) | 10.52% | 7.43% |
| Net Margin (TTM) | 22.52% | 31.74% |
| Operating Margin (TTM) | 28.93% | 26.46% |
| Gross Margin (TTM) | 85.68% | 87.19% |
Growth
Revenue Growth
Cadence Design Systems (CDNS) at 14.12% is around its peer norm for revenue growth, while Check Point Software (CHKP) at 6.25% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Both Cadence Design Systems (CDNS) at 5.45% and Check Point Software (CHKP) at 28.95% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 6.25% |
| Revenue Growth (3Y CAGR) | 14.14% | 5.37% |
| EPS Growth (YoY) | 5.45% | 28.95% |
| EPS Growth (3Y CAGR) | 9.53% | 15.09% |
Financial Strength
Current Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 1.36 and Check Point Software (CHKP) at 1.60 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
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
CHKP
Software & Services industry group
1.60
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- CHKP
- 1.60
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Check Point Software (CHKP) at 0.75 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
CHKP
Software & Services industry group
0.75
- Max
- 2.52
- Q3
- 1.13
- CHKP
- 0.75
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 1.60 |
| Debt / Equity (MRQ) | 0.41 | 0.75 |
| Net Debt / EBITDA | 0.57 | -0.22 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Check Point Software (CHKP) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
CHKP
Software & Services industry group
0.00%
- CHKP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Cadence Design Systems (CDNS) nor Check Point Software (CHKP) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
CHKP
Software & Services industry group
0.00%
- CHKP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Check Point Software (CHKP) at 17.35 sits in the cheaper P/E ratio quartile, while Cadence Design Systems (CDNS) at 63.60 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.
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
CHKP
Software & Services industry group
17.35
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- CHKP
- 17.35
- Min
- 6.69
P/S Ratio (TTM)
Check Point Software (CHKP) at 5.34 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.
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
CHKP
Software & Services industry group
5.34
- Max
- 17.91
- Q3
- 8.78
- CHKP
- 5.34
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Check Point Software (CHKP) at 5.54 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.
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
CHKP
Software & Services industry group
5.54
- Max
- 16.63
- Q3
- 8.50
- CHKP
- 5.54
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | CHKP |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 17.35 |
| P/S Ratio (TTM) | 14.31 | 5.34 |
| P/B Ratio (MRQ) | 12.77 | 5.54 |
| Free Cash Flow Yield (TTM) | 1.99% | 4.87% |