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CDNS vs. IT: Cadence Design Systems vs. Gartner Stock Comparison

How do Cadence Design Systems (CDNS) and Gartner (IT) 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 Gartner (IT) both fall under the Software & Services industry group, but CDNS is classified in Software while IT is classified in IT Services.

Company profile comparison for Cadence Design Systems (CDNS) and Gartner (IT)
Profile ItemCDNSIT
NameCadence Design Systems, Inc.Gartner Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustryApplication SoftwareIT Consulting & Other Services
Market Capitalization87.78 billion USD11.99 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJune 10, 1987October 5, 1993
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CDNS
IT
GSPC
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Cadence Design Systems (CDNS) vs. Gartner (IT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cadence Design Systems (CDNS) and Gartner (IT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cadence Design Systems (CDNS) and Gartner (IT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
Total Return (1Y)3.07%-17.60%
Total Return (3Y, Annualized)9.32%-22.07%
Total Return (5Y, Annualized)12.93%-10.95%

Risk Profile

Drawdown History

CDNS
IT
GSPC
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Cadence Design Systems (CDNS) vs. Gartner (IT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cadence Design Systems (CDNS) and Gartner (IT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
Volatility (1Y, Annualized)42.21%58.29%
Beta (5Y)1.090.95
Max Drawdown (5Y)-34.21%-77.21%
Avg. Volume (3M)2.41M1.14M

Risk-Adjusted Performance

Risk-Return Positioning

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CDNS and IT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
Sharpe Ratio (1Y)-0.03-0.38
Sortino Ratio (1Y)-0.04-0.54

Profitability

ROE (TTM)

Both companies show strong equity returns, but Gartner (IT) at 365.76% 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%

IT

Software & Services industry group

365.76%

IT
365.76%
Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Cadence Design Systems (CDNS) at 22.52% retains a top-quartile share of revenue as profit, ahead of Gartner (IT) at 14.81%, 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%

IT

Software & Services industry group

14.81%

Max
41.17%
Q3
15.28%
IT
14.81%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Cadence Design Systems (CDNS) at 28.93% and Gartner (IT) at 18.58% 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%

IT

Software & Services industry group

18.58%

Max
46.89%
IT
18.58%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
ROE (TTM)22.87%365.76%
ROA (TTM)10.52%11.33%
Net Margin (TTM)22.52%14.81%
Operating Margin (TTM)28.93%18.58%
Gross Margin (TTM)85.68%70.18%

Growth

Revenue Growth

Cadence Design Systems (CDNS) at 14.12% is around its peer norm for revenue growth, while Gartner (IT) at 3.67% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Cadence Design Systems (CDNS) at 5.45% is around its peer norm for EPS growth, while Gartner (IT) at -39.69% drops into the bottom quartile, signaling weaker earnings momentum.

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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
Revenue Growth (YoY)14.12%3.67%
Revenue Growth (3Y CAGR)14.14%5.87%
EPS Growth (YoY)5.45%-39.69%
EPS Growth (3Y CAGR)9.53%-1.05%

Financial Strength

Current Ratio (MRQ)

Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while Gartner (IT) at 0.91 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IT.

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

IT

Software & Services industry group

0.91

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IT
0.91
Min
0.03
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Cadence Design Systems (CDNS) carries debt-to-equity ratio of 0.41 against its industry range, while Gartner (IT) reports no figure this period.

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

IT

Software & Services industry group

--

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
IT
--
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Cadence Design Systems (CDNS) vs. Gartner (IT): IT does not report debt-to-equity ratio, so it has no value marker; CDNS is benchmarked against the Software & Services industry group.

Financial Strength Metrics

Financial strength metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
Current Ratio (MRQ)1.360.91
Debt / Equity (MRQ)0.41--
Net Debt / EBITDA0.571.18

Dividends

Dividend Yield (TTM)

Neither Cadence Design Systems (CDNS) nor Gartner (IT) 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%

IT

Software & Services industry group

0.00%

IT
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Cadence Design Systems (CDNS) nor Gartner (IT) 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%

IT

Software & Services industry group

0.00%

IT
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Gartner (IT) at 13.62 sits in the cheaper P/E ratio quartile, while Cadence Design Systems (CDNS) at 63.60 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.

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

IT

Software & Services industry group

13.62

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
IT
13.62
Min
6.69
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Gartner (IT) at 1.86 looks cheap on sales in the lower P/S ratio quartile, while Cadence Design Systems (CDNS) at 14.31 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

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

IT

Software & Services industry group

1.86

Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
IT
1.86
Min
0.02
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Gartner (IT) reports a negative P/B ratio of -348.81, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Cadence Design Systems (CDNS) reports 12.77, ranking against industry peers normally.

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

IT

Software & Services industry group

-348.81

Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
IT
-348.81
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Cadence Design Systems (CDNS) vs. Gartner (IT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cadence Design Systems (CDNS) and Gartner (IT)
MetricCDNSIT
P/E Ratio (TTM)63.6013.62
P/S Ratio (TTM)14.311.86
P/B Ratio (MRQ)12.77-348.81
Free Cash Flow Yield (TTM)1.99%8.90%