CDNS vs. GWRE: Cadence Design Systems vs. Guidewire Software Stock Comparison
How do Cadence Design Systems (CDNS) and Guidewire Software (GWRE) 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 Guidewire Software (GWRE) 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 | GWRE |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Guidewire Software 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 | 13.34 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | June 10, 1987 | January 25, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| Total Return (1Y) | 3.07% | -25.97% |
| Total Return (3Y, Annualized) | 9.32% | 21.68% |
| Total Return (5Y, Annualized) | 12.93% | 4.78% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 62.03% |
| Beta (5Y) | 1.09 | 0.99 |
| Max Drawdown (5Y) | -34.21% | -60.79% |
| Avg. Volume (3M) | 2.41M | 1.29M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | -0.49 |
| Sortino Ratio (1Y) | -0.04 | -0.68 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Guidewire Software (GWRE) at 10.51% 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%
GWRE
Software & Services industry group
10.51%
- Max
- 53.85%
- Q3
- 17.90%
- GWRE
- 10.51%
- Median
- 6.59%
- 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 Guidewire Software (GWRE) at 9.44%, 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%
GWRE
Software & Services industry group
9.44%
- Max
- 41.17%
- Q3
- 15.28%
- GWRE
- 9.44%
- 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 Guidewire Software (GWRE) at 15.16%, 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%
GWRE
Software & Services industry group
15.16%
- Max
- 46.89%
- Q3
- 17.64%
- GWRE
- 15.16%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| ROE (TTM) | 22.87% | 10.51% |
| ROA (TTM) | 10.52% | 3.54% |
| Net Margin (TTM) | 22.52% | 9.44% |
| Operating Margin (TTM) | 28.93% | 15.16% |
| Gross Margin (TTM) | 85.68% | 64.21% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Guidewire Software (GWRE) at 22.70% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Guidewire Software (GWRE) at 101.23% sits in the top EPS growth quartile, while Cadence Design Systems (CDNS) at 5.45% is closer to the peer norm — faster per-share earnings growth for GWRE.
Growth Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 22.70% |
| Revenue Growth (3Y CAGR) | 14.14% | 17.68% |
| EPS Growth (YoY) | 5.45% | 101.23% |
| EPS Growth (3Y CAGR) | 9.53% | -- |
Financial Strength
Current Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 1.36 and Guidewire Software (GWRE) at 1.79 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
GWRE
Software & Services industry group
1.79
- Max
- 5.11
- Q3
- 2.77
- GWRE
- 1.79
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Guidewire Software (GWRE) at 0.60 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
GWRE
Software & Services industry group
0.60
- Max
- 2.52
- Q3
- 1.13
- GWRE
- 0.60
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 1.79 |
| Debt / Equity (MRQ) | 0.41 | 0.60 |
| Net Debt / EBITDA | 0.57 | -0.38 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Guidewire Software (GWRE) 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%
GWRE
Software & Services industry group
0.00%
- GWRE
- 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 Guidewire Software (GWRE) 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%
GWRE
Software & Services industry group
0.00%
- GWRE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| 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 Guidewire Software (GWRE) at 99.02 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
GWRE
Software & Services industry group
99.02
- Max
- 112.94
- GWRE
- 99.02
- 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 Guidewire Software (GWRE) at 9.04 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
GWRE
Software & Services industry group
9.04
- Max
- 17.91
- GWRE
- 9.04
- 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 Guidewire Software (GWRE) at 11.09 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
GWRE
Software & Services industry group
11.09
- Max
- 16.63
- GWRE
- 11.09
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | GWRE |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 99.02 |
| P/S Ratio (TTM) | 14.31 | 9.04 |
| P/B Ratio (MRQ) | 12.77 | 11.09 |
| Free Cash Flow Yield (TTM) | 1.99% | 2.57% |