CDNS vs. CLS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CDNS and CLS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CDNS | CLS |
|---|---|---|
| Company Name | Cadence Design Systems, Inc. | Celestica Inc. |
| Country | United States | Canada |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Electronic Equipment, Instruments & Components |
| Market Capitalization | 95.13 billion USD | 23.49 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 10, 1987 | June 30, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CDNS and CLS 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 | CDNS | CLS |
|---|---|---|
| 5-Day Price Return | -1.47% | 7.73% |
| 13-Week Price Return | 11.98% | 126.89% |
| 26-Week Price Return | 15.26% | 43.11% |
| 52-Week Price Return | 30.93% | 335.42% |
| Month-to-Date Return | -4.24% | 6.23% |
| Year-to-Date Return | 16.20% | 121.82% |
| 10-Day Avg. Volume | 1.67M | 1.06M |
| 3-Month Avg. Volume | 2.03M | 0.87M |
| 3-Month Volatility | 35.67% | 54.67% |
| Beta | 1.00 | 2.98 |
Profitability
Return on Equity (TTM)
CDNS
21.28%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
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.
CLS
30.66%
Electronic Equipment, Instruments & Components Industry
- Max
- 29.99%
- Q3
- 15.78%
- Median
- 9.05%
- Q1
- 5.63%
- Min
- -9.55%
CLS’s Return on Equity of 30.66% is exceptionally high, placing it well beyond the typical range for the Electronic Equipment, Instruments & Components industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
CDNS
19.88%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
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.
CLS
5.09%
Electronic Equipment, Instruments & Components Industry
- Max
- 25.55%
- Q3
- 12.80%
- Median
- 7.58%
- Q1
- 3.09%
- Min
- -8.70%
CLS’s Net Profit Margin of 5.09% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
CDNS
30.24%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
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.
CLS
7.01%
Electronic Equipment, Instruments & Components Industry
- Max
- 30.04%
- Q3
- 16.04%
- Median
- 9.75%
- Q1
- 4.27%
- Min
- -12.63%
CLS’s Operating Profit Margin of 7.01% is around the midpoint for the Electronic Equipment, Instruments & Components industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CDNS | CLS |
|---|---|---|
| Return on Equity (TTM) | 21.28% | 30.66% |
| Return on Assets (TTM) | 11.04% | 8.98% |
| Net Profit Margin (TTM) | 19.88% | 5.09% |
| Operating Profit Margin (TTM) | 30.24% | 7.01% |
| Gross Profit Margin (TTM) | 85.57% | 11.36% |
Financial Strength
Current Ratio (MRQ)
CDNS
2.82
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
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.
CLS
1.44
Electronic Equipment, Instruments & Components Industry
- Max
- 4.43
- Q3
- 2.88
- Median
- 2.05
- Q1
- 1.52
- Min
- 0.64
CLS’s Current Ratio of 1.44 falls into the lower quartile for the Electronic Equipment, Instruments & Components industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
CDNS
0.50
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- 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.
CLS
0.50
Electronic Equipment, Instruments & Components Industry
- Max
- 1.14
- Q3
- 0.54
- Median
- 0.34
- Q1
- 0.11
- Min
- 0.00
CLS’s Debt-to-Equity Ratio of 0.50 is typical for the Electronic Equipment, Instruments & Components 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)
CDNS
39.06
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
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.
CLS
36.72
Electronic Equipment, Instruments & Components Industry
- Max
- 101.00
- Q3
- 43.88
- Median
- 13.27
- Q1
- 3.73
- Min
- -18.73
CLS’s Interest Coverage Ratio of 36.72 is positioned comfortably within the norm for the Electronic Equipment, Instruments & Components industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CDNS | CLS |
|---|---|---|
| Current Ratio (MRQ) | 2.82 | 1.44 |
| Quick Ratio (MRQ) | 2.33 | 0.86 |
| Debt-to-Equity Ratio (MRQ) | 0.50 | 0.50 |
| Interest Coverage Ratio (TTM) | 39.06 | 36.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CDNS
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- 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.
CLS
0.00%
Electronic Equipment, Instruments & Components Industry
- Max
- 4.86%
- Q3
- 2.53%
- Median
- 1.28%
- Q1
- 0.16%
- Min
- 0.00%
CLS 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)
CDNS
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- 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.
CLS
0.00%
Electronic Equipment, Instruments & Components Industry
- Max
- 161.37%
- Q3
- 67.12%
- Median
- 34.46%
- Q1
- 3.82%
- Min
- 0.00%
CLS 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 | CDNS | CLS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CDNS
95.30
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
CDNS’s P/E Ratio of 95.30 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.
CLS
45.70
Electronic Equipment, Instruments & Components Industry
- Max
- 73.87
- Q3
- 41.11
- Median
- 25.31
- Q1
- 18.58
- Min
- 8.59
A P/E Ratio of 45.70 places CLS in the upper quartile for the Electronic Equipment, Instruments & Components industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
CDNS
18.95
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
CDNS’s P/S Ratio of 18.95 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.
CLS
2.32
Electronic Equipment, Instruments & Components Industry
- Max
- 6.74
- Q3
- 3.49
- Median
- 2.03
- Q1
- 1.16
- Min
- 0.11
CLS’s P/S Ratio of 2.32 aligns with the market consensus for the Electronic Equipment, Instruments & Components industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
CDNS
16.81
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- 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.
CLS
10.12
Electronic Equipment, Instruments & Components Industry
- Max
- 6.45
- Q3
- 3.49
- Median
- 1.98
- Q1
- 1.31
- Min
- 0.35
At 10.12, CLS’s P/B Ratio is at an extreme premium to the Electronic Equipment, Instruments & Components 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.
Valuation at a Glance
| Symbol | CDNS | CLS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 95.30 | 45.70 |
| Price-to-Sales Ratio (TTM) | 18.95 | 2.32 |
| Price-to-Book Ratio (MRQ) | 16.81 | 10.12 |
| Price-to-Free Cash Flow Ratio (TTM) | 60.84 | 63.72 |