CDNS vs. HOOD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CDNS and HOOD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CDNS | HOOD |
|---|---|---|
| Company Name | Cadence Design Systems, Inc. | Robinhood Markets, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Financials |
| GICS Industry | Software | Capital Markets |
| Market Capitalization | 95.13 billion USD | 96.53 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 10, 1987 | July 29, 2021 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CDNS and HOOD 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 | HOOD |
|---|---|---|
| 5-Day Price Return | -1.47% | -2.35% |
| 13-Week Price Return | 11.98% | 89.13% |
| 26-Week Price Return | 15.26% | 104.29% |
| 52-Week Price Return | 30.93% | 485.87% |
| Month-to-Date Return | -4.24% | 5.41% |
| Year-to-Date Return | 16.20% | 191.52% |
| 10-Day Avg. Volume | 1.67M | 45.76M |
| 3-Month Avg. Volume | 2.03M | 45.47M |
| 3-Month Volatility | 35.67% | 55.10% |
| Beta | 1.00 | 2.37 |
Profitability
Return on Equity (TTM)
CDNS
21.28%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
CDNS’s Return on Equity of 21.28% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
HOOD
22.92%
Capital Markets Industry
- Max
- 38.97%
- Q3
- 21.61%
- Median
- 13.77%
- Q1
- 8.31%
- Min
- -4.25%
In the upper quartile for the Capital Markets industry, HOOD’s Return on Equity of 22.92% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CDNS
19.88%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
A Net Profit Margin of 19.88% places CDNS in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
HOOD
50.13%
Capital Markets Industry
- Max
- 66.67%
- Q3
- 35.11%
- Median
- 23.49%
- Q1
- 13.63%
- Min
- -15.18%
A Net Profit Margin of 50.13% places HOOD in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
CDNS
30.24%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
An Operating Profit Margin of 30.24% 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.
HOOD
42.50%
Capital Markets Industry
- Max
- 86.40%
- Q3
- 46.46%
- Median
- 32.80%
- Q1
- 18.32%
- Min
- -21.87%
HOOD’s Operating Profit Margin of 42.50% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CDNS | HOOD |
|---|---|---|
| Return on Equity (TTM) | 21.28% | 22.92% |
| Return on Assets (TTM) | 11.04% | 5.41% |
| Net Profit Margin (TTM) | 19.88% | 50.13% |
| Operating Profit Margin (TTM) | 30.24% | 42.50% |
| Gross Profit Margin (TTM) | 85.57% | 94.76% |
Financial Strength
Current Ratio (MRQ)
CDNS
2.82
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
CDNS’s Current Ratio of 2.82 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.
HOOD
1.25
Capital Markets Industry
- Max
- 3.76
- Q3
- 1.89
- Median
- 1.01
- Q1
- 0.54
- Min
- -0.41
For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio (MRQ)
CDNS
0.50
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
CDNS’s Debt-to-Equity Ratio of 0.50 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.
HOOD
1.57
Capital Markets Industry
- Max
- 6.62
- Q3
- 2.84
- Median
- 1.02
- Q1
- 0.32
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.
Interest Coverage Ratio (TTM)
CDNS
39.06
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
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.
HOOD
--
Capital Markets Industry
- Max
- 126.03
- Q3
- 60.98
- Median
- 11.77
- Q1
- 4.95
- Min
- -36.26
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.
Financial Strength at a Glance
| Symbol | CDNS | HOOD |
|---|---|---|
| Current Ratio (MRQ) | 2.82 | 1.25 |
| Quick Ratio (MRQ) | 2.33 | 1.24 |
| Debt-to-Equity Ratio (MRQ) | 0.50 | 1.57 |
| Interest Coverage Ratio (TTM) | 39.06 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CDNS
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- 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.
HOOD
0.00%
Capital Markets Industry
- Max
- 10.26%
- Q3
- 4.86%
- Median
- 2.78%
- Q1
- 1.22%
- Min
- 0.00%
HOOD 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.
Dividend Payout Ratio (TTM)
CDNS
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- 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.
HOOD
0.00%
Capital Markets Industry
- Max
- 200.72%
- Q3
- 101.92%
- Median
- 57.97%
- Q1
- 32.36%
- Min
- 0.00%
HOOD 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.
Dividend at a Glance
| Symbol | CDNS | HOOD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CDNS
95.30
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
CDNS’s P/E Ratio of 95.30 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
HOOD
53.99
Capital Markets Industry
- Max
- 58.89
- Q3
- 31.00
- Median
- 18.54
- Q1
- 12.09
- Min
- 5.24
A P/E Ratio of 53.99 places HOOD in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
CDNS
18.95
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
CDNS’s P/S Ratio of 18.95 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.
HOOD
27.06
Capital Markets Industry
- Max
- 14.49
- Q3
- 7.41
- Median
- 4.68
- Q1
- 2.25
- Min
- 0.04
With a P/S Ratio of 27.06, HOOD trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
CDNS
16.81
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
CDNS’s P/B Ratio of 16.81 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.
HOOD
10.24
Capital Markets Industry
- Max
- 9.48
- Q3
- 4.94
- Median
- 2.42
- Q1
- 1.21
- Min
- 0.38
At 10.24, HOOD’s P/B Ratio is at an extreme premium to the Capital Markets industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | CDNS | HOOD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 95.30 | 53.99 |
| Price-to-Sales Ratio (TTM) | 18.95 | 27.06 |
| Price-to-Book Ratio (MRQ) | 16.81 | 10.24 |
| Price-to-Free Cash Flow Ratio (TTM) | 60.84 | 16.32 |