CDNS vs. DDOG: Cadence Design Systems vs. Datadog Stock Comparison
How do Cadence Design Systems (CDNS) and Datadog (DDOG) 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 Datadog (DDOG) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | CDNS | DDOG |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Datadog Inc. Class A |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Application Software |
| Market Capitalization | 87.78 billion USD | 64.64 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | September 19, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| Total Return (1Y) | 3.07% | -5.64% |
| Total Return (3Y, Annualized) | 9.32% | 21.65% |
| Total Return (5Y, Annualized) | 12.93% | -1.69% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 70.49% |
| Beta (5Y) | 1.09 | 1.57 |
| Max Drawdown (5Y) | -34.21% | -68.11% |
| Avg. Volume (3M) | 2.41M | 3.82M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | -0.14 |
| Sortino Ratio (1Y) | -0.04 | -0.21 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Datadog (DDOG) at 6.43% is closer to the peer norm — stronger capital efficiency for CDNS.
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%
DDOG
Software & Services industry group
6.43%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- DDOG
- 6.43%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Cadence Design Systems (CDNS) at 22.52% retains a top-quartile share of revenue as profit, ahead of Datadog (DDOG) at 6.12%, which keeps about the industry-typical share.
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%
DDOG
Software & Services industry group
6.12%
- Max
- 41.17%
- Q3
- 15.28%
- DDOG
- 6.12%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Cadence Design Systems (CDNS) at 28.93% operates in the top operating margin quartile, ahead of Datadog (DDOG) at 6.33%, which runs around its industry’s norm.
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%
DDOG
Software & Services industry group
6.33%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- DDOG
- 6.33%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| ROE (TTM) | 22.87% | 6.43% |
| ROA (TTM) | 10.52% | 0.91% |
| Net Margin (TTM) | 22.52% | 6.12% |
| Operating Margin (TTM) | 28.93% | 6.33% |
| Gross Margin (TTM) | 85.68% | 79.61% |
Growth
Revenue Growth
Datadog (DDOG) at 27.68% sits in the top revenue growth quartile, while Cadence Design Systems (CDNS) at 14.12% is closer to the peer norm — faster top-line expansion for DDOG.
EPS Growth
Cadence Design Systems (CDNS) at 5.45% is around its peer norm for EPS growth, while Datadog (DDOG) at -40.38% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 27.68% |
| Revenue Growth (3Y CAGR) | 14.14% | 26.95% |
| EPS Growth (YoY) | 5.45% | -40.38% |
| EPS Growth (3Y CAGR) | 9.53% | -- |
Financial Strength
Current Ratio (MRQ)
Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while Datadog (DDOG) at 3.51 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets 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
DDOG
Software & Services industry group
3.51
- Max
- 5.11
- DDOG
- 3.51
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Datadog (DDOG) at 0.28 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
DDOG
Software & Services industry group
0.28
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- DDOG
- 0.28
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 3.51 |
| Debt / Equity (MRQ) | 0.41 | 0.28 |
| Net Debt / EBITDA | 0.57 | -23.06 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Datadog (DDOG) 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%
DDOG
Software & Services industry group
0.00%
- DDOG
- 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 Datadog (DDOG) 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%
DDOG
Software & Services industry group
0.00%
- DDOG
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both look expensive on trailing earnings: Cadence Design Systems (CDNS) at 63.60 sits in the richer P/E ratio quartile, and Datadog (DDOG) at 248.67 is richer still, above its industry range.
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
DDOG
Software & Services industry group
248.67
- DDOG
- 248.67
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both Cadence Design Systems (CDNS) at 14.31 and Datadog (DDOG) at 15.11 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
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
DDOG
Software & Services industry group
15.11
- Max
- 17.91
- DDOG
- 15.11
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 12.77 and Datadog (DDOG) at 13.71 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
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
DDOG
Software & Services industry group
13.71
- Max
- 16.63
- DDOG
- 13.71
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | DDOG |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 248.67 |
| P/S Ratio (TTM) | 14.31 | 15.11 |
| P/B Ratio (MRQ) | 12.77 | 13.71 |
| Free Cash Flow Yield (TTM) | 1.99% | 1.65% |