CDNS vs. FIS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CDNS and FIS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CDNS | FIS |
|---|---|---|
| Company Name | Cadence Design Systems, Inc. | Fidelity National Information Services, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Financials |
| GICS Industry | Software | Financial Services |
| Market Capitalization | 85.39 billion USD | 33.77 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 10, 1987 | June 20, 2001 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CDNS and FIS 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 | FIS |
|---|---|---|
| 5-Day Price Return | -4.26% | -1.83% |
| 13-Week Price Return | -9.99% | -9.30% |
| 26-Week Price Return | -1.17% | -17.30% |
| 52-Week Price Return | 2.76% | -27.72% |
| Month-to-Date Return | -7.02% | 2.75% |
| Year-to-Date Return | 4.82% | -20.47% |
| 10-Day Avg. Volume | 2.02M | 4.06M |
| 3-Month Avg. Volume | 1.80M | 3.90M |
| 3-Month Volatility | 32.02% | 24.59% |
| Beta | 1.03 | 0.94 |
Profitability
Return on Equity (TTM)
CDNS
21.59%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
CDNS’s Return on Equity of 21.59% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
FIS
1.03%
Financial Services Industry
- Max
- 34.42%
- Q3
- 16.76%
- Median
- 9.18%
- Q1
- 3.90%
- Min
- -10.16%
FIS’s Return on Equity of 1.03% is in the lower quartile for the Financial Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
CDNS
20.35%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
A Net Profit Margin of 20.35% places CDNS in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
FIS
1.45%
Financial Services Industry
- Max
- 52.16%
- Q3
- 25.33%
- Median
- 13.11%
- Q1
- 7.04%
- Min
- -8.99%
Falling into the lower quartile for the Financial Services industry, FIS’s Net Profit Margin of 1.45% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
CDNS
28.50%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 28.50% 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.
FIS
13.74%
Financial Services Industry
- Max
- 81.07%
- Q3
- 40.32%
- Median
- 19.93%
- Q1
- 10.20%
- Min
- -34.40%
FIS’s Operating Profit Margin of 13.74% is around the midpoint for the Financial Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CDNS | FIS |
|---|---|---|
| Return on Equity (TTM) | 21.59% | 1.03% |
| Return on Assets (TTM) | 11.44% | 0.46% |
| Net Profit Margin (TTM) | 20.35% | 1.45% |
| Operating Profit Margin (TTM) | 28.50% | 13.74% |
| Gross Profit Margin (TTM) | 85.54% | 36.65% |
Financial Strength
Current Ratio (MRQ)
CDNS
3.05
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
CDNS’s Current Ratio of 3.05 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.
FIS
0.53
Financial Services Industry
- Max
- 4.36
- Q3
- 2.26
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio (MRQ)
CDNS
0.48
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
CDNS’s Debt-to-Equity Ratio of 0.48 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.
FIS
0.94
Financial Services Industry
- Max
- 5.07
- Q3
- 2.14
- Median
- 0.55
- Q1
- 0.11
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.
Interest Coverage Ratio (TTM)
CDNS
39.06
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
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.
FIS
5.52
Financial Services Industry
- Max
- 140.54
- Q3
- 57.67
- Median
- 6.72
- Q1
- 1.93
- Min
- -33.27
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.
Financial Strength at a Glance
| Symbol | CDNS | FIS |
|---|---|---|
| Current Ratio (MRQ) | 3.05 | 0.53 |
| Quick Ratio (MRQ) | 2.49 | 0.41 |
| Debt-to-Equity Ratio (MRQ) | 0.48 | 0.94 |
| Interest Coverage Ratio (TTM) | 39.06 | 5.52 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CDNS
0.00%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- 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.
FIS
2.50%
Financial Services Industry
- Max
- 7.52%
- Q3
- 3.60%
- Median
- 1.75%
- Q1
- 0.00%
- Min
- 0.00%
FIS’s Dividend Yield of 2.50% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CDNS
0.00%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- 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.
FIS
99.68%
Financial Services Industry
- Max
- 132.10%
- Q3
- 64.32%
- Median
- 17.51%
- Q1
- 0.00%
- Min
- 0.00%
FIS’s Dividend Payout Ratio of 99.68% is in the upper quartile for the Financial Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | CDNS | FIS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.50% |
| Dividend Payout Ratio (TTM) | 0.00% | 99.68% |
Valuation
Price-to-Earnings Ratio (TTM)
CDNS
80.80
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
A P/E Ratio of 80.80 places CDNS in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
FIS
218.86
Financial Services Industry
- Max
- 46.13
- Q3
- 28.79
- Median
- 13.18
- Q1
- 9.14
- Min
- 0.47
At 218.86, FIS’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
CDNS
16.45
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
CDNS’s P/S Ratio of 16.45 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.
FIS
3.18
Financial Services Industry
- Max
- 9.71
- Q3
- 4.81
- Median
- 2.49
- Q1
- 1.25
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial Services industry.
Price-to-Book Ratio (MRQ)
CDNS
18.41
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
CDNS’s P/B Ratio of 18.41 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.
FIS
2.49
Financial Services Industry
- Max
- 7.21
- Q3
- 3.51
- Median
- 1.52
- Q1
- 0.88
- Min
- 0.08
FIS’s P/B Ratio of 2.49 is within the conventional range for the Financial Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | CDNS | FIS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 80.80 | 218.86 |
| Price-to-Sales Ratio (TTM) | 16.45 | 3.18 |
| Price-to-Book Ratio (MRQ) | 18.41 | 2.49 |
| Price-to-Free Cash Flow Ratio (TTM) | 57.98 | 17.62 |