CDNS vs. JBL: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CDNS and JBL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CDNS | JBL |
|---|---|---|
| Company Name | Cadence Design Systems, Inc. | Jabil Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Electronic Equipment, Instruments & Components |
| Market Capitalization | 85.39 billion USD | 21.46 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 10, 1987 | May 3, 1993 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CDNS and JBL 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 | JBL |
|---|---|---|
| 5-Day Price Return | -4.26% | -7.93% |
| 13-Week Price Return | -9.99% | -6.25% |
| 26-Week Price Return | -1.17% | 20.87% |
| 52-Week Price Return | 2.76% | 53.25% |
| Month-to-Date Return | -7.02% | -8.61% |
| Year-to-Date Return | 4.82% | 40.28% |
| 10-Day Avg. Volume | 2.02M | 1.07M |
| 3-Month Avg. Volume | 1.80M | 1.35M |
| 3-Month Volatility | 32.02% | 39.96% |
| Beta | 1.03 | 1.26 |
Profitability
Return on Equity (TTM)
CDNS
21.59%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
CDNS’s Return on Equity of 21.59% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
JBL
45.71%
Electronic Equipment, Instruments & Components Industry
- Max
- 25.62%
- Q3
- 13.32%
- Median
- 9.23%
- Q1
- 4.70%
- Min
- -3.60%
JBL’s Return on Equity of 45.71% is exceptionally high, placing it well beyond the typical range for the Electronic Equipment, Instruments & Components industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
CDNS
20.35%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
A Net Profit Margin of 20.35% places CDNS in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
JBL
2.20%
Electronic Equipment, Instruments & Components Industry
- Max
- 18.22%
- Q3
- 10.34%
- Median
- 7.81%
- Q1
- 3.28%
- Min
- -4.57%
Falling into the lower quartile for the Electronic Equipment, Instruments & Components industry, JBL’s Net Profit Margin of 2.20% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
CDNS
28.50%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 28.50% 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.
JBL
3.97%
Electronic Equipment, Instruments & Components Industry
- Max
- 26.64%
- Q3
- 15.10%
- Median
- 9.55%
- Q1
- 4.57%
- Min
- -7.07%
JBL’s Operating Profit Margin of 3.97% is in the lower quartile for the Electronic Equipment, Instruments & Components industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | CDNS | JBL |
|---|---|---|
| Return on Equity (TTM) | 21.59% | 45.71% |
| Return on Assets (TTM) | 11.44% | 3.64% |
| Net Profit Margin (TTM) | 20.35% | 2.20% |
| Operating Profit Margin (TTM) | 28.50% | 3.97% |
| Gross Profit Margin (TTM) | 85.54% | 8.88% |
Financial Strength
Current Ratio (MRQ)
CDNS
3.05
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
CDNS’s Current Ratio of 3.05 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.
JBL
1.00
Electronic Equipment, Instruments & Components Industry
- Max
- 5.52
- Q3
- 3.20
- Median
- 2.02
- Q1
- 1.51
- Min
- 0.33
JBL’s Current Ratio of 1.00 falls into the lower quartile for the Electronic Equipment, Instruments & Components industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
CDNS
0.48
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
CDNS’s Debt-to-Equity Ratio of 0.48 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.
JBL
1.91
Electronic Equipment, Instruments & Components Industry
- Max
- 1.12
- Q3
- 0.55
- Median
- 0.33
- Q1
- 0.10
- Min
- 0.00
With a Debt-to-Equity Ratio of 1.91, JBL operates with exceptionally high leverage compared to the Electronic Equipment, Instruments & Components industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
CDNS
39.06
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
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.
JBL
5.62
Electronic Equipment, Instruments & Components Industry
- Max
- 114.40
- Q3
- 51.32
- Median
- 14.03
- Q1
- 3.74
- Min
- -61.15
JBL’s Interest Coverage Ratio of 5.62 is positioned comfortably within the norm for the Electronic Equipment, Instruments & Components industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CDNS | JBL |
|---|---|---|
| Current Ratio (MRQ) | 3.05 | 1.00 |
| Quick Ratio (MRQ) | 2.49 | 0.51 |
| Debt-to-Equity Ratio (MRQ) | 0.48 | 1.91 |
| Interest Coverage Ratio (TTM) | 39.06 | 5.62 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CDNS
0.00%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- 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.
JBL
0.17%
Electronic Equipment, Instruments & Components Industry
- Max
- 5.16%
- Q3
- 2.39%
- Median
- 1.18%
- Q1
- 0.12%
- Min
- 0.00%
JBL’s Dividend Yield of 0.17% is consistent with its peers in the Electronic Equipment, Instruments & Components industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CDNS
0.00%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- 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.
JBL
5.48%
Electronic Equipment, Instruments & Components Industry
- Max
- 197.57%
- Q3
- 87.33%
- Median
- 36.23%
- Q1
- 3.99%
- Min
- 0.00%
JBL’s Dividend Payout Ratio of 5.48% is within the typical range for the Electronic Equipment, Instruments & Components industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CDNS | JBL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.17% |
| Dividend Payout Ratio (TTM) | 0.00% | 5.48% |
Valuation
Price-to-Earnings Ratio (TTM)
CDNS
80.80
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
A P/E Ratio of 80.80 places CDNS in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
JBL
32.70
Electronic Equipment, Instruments & Components Industry
- Max
- 71.05
- Q3
- 42.87
- Median
- 27.84
- Q1
- 19.17
- Min
- 7.73
JBL’s P/E Ratio of 32.70 is within the middle range for the Electronic Equipment, Instruments & Components industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
CDNS
16.45
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
CDNS’s P/S Ratio of 16.45 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.
JBL
0.72
Electronic Equipment, Instruments & Components Industry
- Max
- 7.81
- Q3
- 4.01
- Median
- 2.09
- Q1
- 1.25
- Min
- 0.16
In the lower quartile for the Electronic Equipment, Instruments & Components industry, JBL’s P/S Ratio of 0.72 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
CDNS
18.41
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
CDNS’s P/B Ratio of 18.41 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.
JBL
14.53
Electronic Equipment, Instruments & Components Industry
- Max
- 7.49
- Q3
- 4.09
- Median
- 2.35
- Q1
- 1.55
- Min
- 0.44
At 14.53, JBL’s P/B Ratio is at an extreme premium to the Electronic Equipment, Instruments & Components 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 | JBL |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 80.80 | 32.70 |
| Price-to-Sales Ratio (TTM) | 16.45 | 0.72 |
| Price-to-Book Ratio (MRQ) | 18.41 | 14.53 |
| Price-to-Free Cash Flow Ratio (TTM) | 57.98 | 18.33 |
