CDNS vs. FTNT: Cadence Design Systems vs. Fortinet Stock Comparison
How do Cadence Design Systems (CDNS) and Fortinet (FTNT) 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 Fortinet (FTNT) both belong to the Software industry, though CDNS is classified under Application Software while FTNT falls under Systems Software.
| Profile Item | CDNS | FTNT |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Fortinet, 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 | Systems Software |
| Market Capitalization | 87.78 billion USD | 87.31 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | November 18, 2009 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | FTNT |
|---|---|---|
| Total Return (1Y) | 3.07% | 49.91% |
| Total Return (3Y, Annualized) | 9.32% | 35.15% |
| Total Return (5Y, Annualized) | 12.93% | 11.92% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | FTNT |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 49.03% |
| Beta (5Y) | 1.09 | 1.07 |
| Max Drawdown (5Y) | -34.21% | -38.98% |
| Avg. Volume (3M) | 2.41M | 4.68M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | FTNT |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | 0.93 |
| Sortino Ratio (1Y) | -0.04 | 1.37 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Fortinet (FTNT) at 153.08% is the standout with ROE above its industry range; Cadence Design Systems (CDNS) at 22.87% also sits in the top quartile.
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%
FTNT
Software & Services industry group
153.08%
- FTNT
- 153.08%
- Max
- 53.85%
- 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 Fortinet (FTNT) at 28.96% 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%
FTNT
Software & Services industry group
28.96%
- Max
- 41.17%
- FTNT
- 28.96%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Cadence Design Systems (CDNS) at 28.93% and Fortinet (FTNT) at 33.82% 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%
FTNT
Software & Services industry group
33.82%
- Max
- 46.89%
- FTNT
- 33.82%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | FTNT |
|---|---|---|
| ROE (TTM) | 22.87% | 153.08% |
| ROA (TTM) | 10.52% | 15.22% |
| Net Margin (TTM) | 22.52% | 28.96% |
| Operating Margin (TTM) | 28.93% | 33.82% |
| Gross Margin (TTM) | 85.68% | 79.75% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Fortinet (FTNT) at 14.17% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Cadence Design Systems (CDNS) at 5.45% and Fortinet (FTNT) at 7.08% 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 | FTNT |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 14.17% |
| Revenue Growth (3Y CAGR) | 14.14% | 15.46% |
| EPS Growth (YoY) | 5.45% | 7.08% |
| EPS Growth (3Y CAGR) | 9.53% | 31.68% |
Financial Strength
Current Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 1.36 and Fortinet (FTNT) at 1.40 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
FTNT
Software & Services industry group
1.40
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- FTNT
- 1.40
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Fortinet (FTNT) at 0.25 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
FTNT
Software & Services industry group
0.25
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- FTNT
- 0.25
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | FTNT |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 1.40 |
| Debt / Equity (MRQ) | 0.41 | 0.25 |
| Net Debt / EBITDA | 0.57 | -1.54 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Fortinet (FTNT) 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%
FTNT
Software & Services industry group
0.00%
- FTNT
- 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 Fortinet (FTNT) 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%
FTNT
Software & Services industry group
0.00%
- FTNT
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | FTNT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Fortinet (FTNT) at 38.84 is near its industry’s usual P/E ratio, while Cadence Design Systems (CDNS) at 63.60 sits in the richer quartile — CDNS needs stronger growth or earnings quality to justify the premium.
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
FTNT
Software & Services industry group
38.84
- Max
- 112.94
- Q3
- 60.32
- FTNT
- 38.84
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both Cadence Design Systems (CDNS) at 14.31 and Fortinet (FTNT) at 11.08 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
FTNT
Software & Services industry group
11.08
- Max
- 17.91
- FTNT
- 11.08
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both look rich against book: Cadence Design Systems (CDNS) at 12.77 sits in the upper P/B ratio quartile, and Fortinet (FTNT) at 38.85 prices even higher, above its industry range.
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
FTNT
Software & Services industry group
38.85
- FTNT
- 38.85
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | FTNT |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 38.84 |
| P/S Ratio (TTM) | 14.31 | 11.08 |
| P/B Ratio (MRQ) | 12.77 | 38.85 |
| Free Cash Flow Yield (TTM) | 1.99% | 2.85% |