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.
| Profile Item | CDNS | IT |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Gartner Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | IT Services |
| GICS Sub-Industry | Application Software | IT Consulting & Other Services |
| Market Capitalization | 87.78 billion USD | 11.99 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | June 10, 1987 | October 5, 1993 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | IT |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | CDNS | IT |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 58.29% |
| Beta (5Y) | 1.09 | 0.95 |
| Max Drawdown (5Y) | -34.21% | -77.21% |
| Avg. Volume (3M) | 2.41M | 1.14M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | IT |
|---|---|---|
| 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%
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%
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%
Profitability Metrics
| Metric | CDNS | IT |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | CDNS | IT |
|---|---|---|
| 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
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
- --
Financial Strength Metrics
| Metric | CDNS | IT |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 0.91 |
| Debt / Equity (MRQ) | 0.41 | -- |
| Net Debt / EBITDA | 0.57 | 1.18 |
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%
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%
Dividend Metrics
| Metric | CDNS | IT |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | CDNS | IT |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 13.62 |
| P/S Ratio (TTM) | 14.31 | 1.86 |
| P/B Ratio (MRQ) | 12.77 | -348.81 |
| Free Cash Flow Yield (TTM) | 1.99% | 8.90% |