CDNS vs. DT: Cadence Design Systems vs. Dynatrace Stock Comparison
How do Cadence Design Systems (CDNS) and Dynatrace (DT) 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 Dynatrace (DT) 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 | DT |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Dynatrace Inc. |
| 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 | 12.46 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | June 10, 1987 | August 1, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | DT |
|---|---|---|
| Total Return (1Y) | 3.07% | -6.35% |
| Total Return (3Y, Annualized) | 9.32% | -3.59% |
| Total Return (5Y, Annualized) | 12.93% | -10.27% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | DT |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 45.85% |
| Beta (5Y) | 1.09 | 0.80 |
| Max Drawdown (5Y) | -34.21% | -60.40% |
| Avg. Volume (3M) | 2.41M | 7.54M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | DT |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | -0.23 |
| Sortino Ratio (1Y) | -0.04 | -0.31 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Dynatrace (DT) at 6.41% 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%
DT
Software & Services industry group
6.41%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- DT
- 6.41%
- 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 Dynatrace (DT) at 7.42%, 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%
DT
Software & Services industry group
7.42%
- Max
- 41.17%
- Q3
- 15.28%
- DT
- 7.42%
- 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 Dynatrace (DT) at 16.49%, 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%
DT
Software & Services industry group
16.49%
- Max
- 46.89%
- Q3
- 17.64%
- DT
- 16.49%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | DT |
|---|---|---|
| ROE (TTM) | 22.87% | 6.41% |
| ROA (TTM) | 10.52% | 3.95% |
| Net Margin (TTM) | 22.52% | 7.42% |
| Operating Margin (TTM) | 28.93% | 16.49% |
| Gross Margin (TTM) | 85.68% | 81.34% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Dynatrace (DT) at 18.82% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Cadence Design Systems (CDNS) at 5.45% is around its peer norm for EPS growth, while Dynatrace (DT) at -66.04% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | CDNS | DT |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 18.82% |
| Revenue Growth (3Y CAGR) | 14.14% | 20.33% |
| EPS Growth (YoY) | 5.45% | -66.04% |
| EPS Growth (3Y CAGR) | 9.53% | 13.43% |
Financial Strength
Current Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 1.36 and Dynatrace (DT) at 2.09 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
DT
Software & Services industry group
2.09
- Max
- 5.11
- Q3
- 2.77
- DT
- 2.09
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Dynatrace (DT) at 0.69 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
DT
Software & Services industry group
0.69
- Max
- 2.52
- Q3
- 1.13
- DT
- 0.69
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | DT |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 2.09 |
| Debt / Equity (MRQ) | 0.41 | 0.69 |
| Net Debt / EBITDA | 0.57 | -1.80 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Dynatrace (DT) 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%
DT
Software & Services industry group
0.00%
- DT
- 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 Dynatrace (DT) 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%
DT
Software & Services industry group
0.00%
- DT
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | DT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both Cadence Design Systems (CDNS) at 63.60 and Dynatrace (DT) at 80.44 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.
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
DT
Software & Services industry group
80.44
- Max
- 112.94
- DT
- 80.44
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Dynatrace (DT) at 5.71 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
DT
Software & Services industry group
5.71
- Max
- 17.91
- Q3
- 8.78
- DT
- 5.71
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Dynatrace (DT) at 5.47 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
DT
Software & Services industry group
5.47
- Max
- 16.63
- Q3
- 8.50
- DT
- 5.47
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | DT |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 80.44 |
| P/S Ratio (TTM) | 14.31 | 5.71 |
| P/B Ratio (MRQ) | 12.77 | 5.47 |
| Free Cash Flow Yield (TTM) | 1.99% | 4.09% |