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CDNS vs. JKHY: A Head-to-Head Stock Comparison

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Here’s a clear look at CDNS and JKHY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCDNSJKHY
Company NameCadence Design Systems, Inc.Jack Henry & Associates, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyFinancials
GICS IndustrySoftwareFinancial Services
Market Capitalization94.63 billion USD10.66 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 10, 1987November 20, 1985
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CDNS and JKHY 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.

CDNS vs. JKHY: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCDNSJKHY
5-Day Price Return-0.36%-3.25%
13-Week Price Return6.26%-19.34%
26-Week Price Return36.54%-19.90%
52-Week Price Return30.06%-18.54%
Month-to-Date Return-1.14%-1.79%
Year-to-Date Return15.58%-16.57%
10-Day Avg. Volume1.43M1.20M
3-Month Avg. Volume1.85M0.73M
3-Month Volatility35.92%20.55%
Beta1.050.75

Profitability

Return on Equity (TTM)

CDNS

21.28%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

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.

JKHY

22.60%

Financial Services Industry

Max
39.28%
Q3
18.88%
Median
9.97%
Q1
4.03%
Min
-10.25%

In the upper quartile for the Financial Services industry, JKHY’s Return on Equity of 22.60% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CDNS vs. JKHY: A comparison of their Return on Equity (TTM) against their respective Software and Financial Services industry benchmarks.

Net Profit Margin (TTM)

CDNS

19.88%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

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.

JKHY

19.19%

Financial Services Industry

Max
52.16%
Q3
25.35%
Median
12.68%
Q1
6.11%
Min
-11.69%

JKHY’s Net Profit Margin of 19.19% is aligned with the median group of its peers in the Financial Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

CDNS vs. JKHY: A comparison of their Net Profit Margin (TTM) against their respective Software and Financial Services industry benchmarks.

Operating Profit Margin (TTM)

CDNS

30.24%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

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.

JKHY

23.94%

Financial Services Industry

Max
75.57%
Q3
37.78%
Median
19.09%
Q1
10.04%
Min
-19.42%

JKHY’s Operating Profit Margin of 23.94% is around the midpoint for the Financial Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

CDNS vs. JKHY: A comparison of their Operating Profit Margin (TTM) against their respective Software and Financial Services industry benchmarks.

Profitability at a Glance

SymbolCDNSJKHY
Return on Equity (TTM)21.28%22.60%
Return on Assets (TTM)11.04%15.43%
Net Profit Margin (TTM)19.88%19.19%
Operating Profit Margin (TTM)30.24%23.94%
Gross Profit Margin (TTM)85.57%42.71%

Financial Strength

Current Ratio (MRQ)

CDNS

2.82

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

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.

JKHY

1.27

Financial Services Industry

Max
4.83
Q3
2.70
Median
1.44
Q1
0.86
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

CDNS vs. JKHY: A comparison of their Current Ratio (MRQ) against their respective Software and Financial Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CDNS

0.50

Software Industry

Max
2.16
Q3
0.86
Median
0.31
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.

JKHY

0.00

Financial Services Industry

Max
5.07
Q3
2.14
Median
0.66
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

CDNS vs. JKHY: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Financial Services industry benchmarks.

Interest Coverage Ratio (TTM)

CDNS

39.06

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
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.

JKHY

78.80

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

CDNS vs. JKHY: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Financial Services industry benchmarks.

Financial Strength at a Glance

SymbolCDNSJKHY
Current Ratio (MRQ)2.821.27
Quick Ratio (MRQ)2.331.00
Debt-to-Equity Ratio (MRQ)0.500.00
Interest Coverage Ratio (TTM)39.0678.80

Growth

Revenue Growth

CDNS vs. JKHY: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CDNS vs. JKHY: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CDNS

0.00%

Software Industry

Max
0.22%
Q3
0.11%
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.

JKHY

1.54%

Financial Services Industry

Max
8.12%
Q3
3.37%
Median
1.70%
Q1
0.00%
Min
0.00%

JKHY’s Dividend Yield of 1.54% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

CDNS vs. JKHY: A comparison of their Dividend Yield (TTM) against their respective Software and Financial Services industry benchmarks.

Dividend Payout Ratio (TTM)

CDNS

0.00%

Software Industry

Max
3.29%
Q3
2.41%
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.

JKHY

36.13%

Financial Services Industry

Max
132.10%
Q3
64.32%
Median
18.23%
Q1
0.00%
Min
0.00%

JKHY’s Dividend Payout Ratio of 36.13% is within the typical range for the Financial Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CDNS vs. JKHY: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Financial Services industry benchmarks.

Dividend at a Glance

SymbolCDNSJKHY
Dividend Yield (TTM)0.00%1.54%
Dividend Payout Ratio (TTM)0.00%36.13%

Valuation

Price-to-Earnings Ratio (TTM)

CDNS

93.50

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

CDNS’s P/E Ratio of 93.50 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.

JKHY

23.40

Financial Services Industry

Max
45.81
Q3
30.21
Median
16.29
Q1
10.14
Min
0.70

JKHY’s P/E Ratio of 23.40 is within the middle range for the Financial Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CDNS vs. JKHY: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Financial Services industry benchmarks.

Price-to-Sales Ratio (TTM)

CDNS

18.59

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

CDNS’s P/S Ratio of 18.59 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.

JKHY

4.49

Financial Services Industry

Max
10.88
Q3
5.34
Median
2.64
Q1
1.24
Min
0.06

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

CDNS vs. JKHY: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Financial Services industry benchmarks.

Price-to-Book Ratio (MRQ)

CDNS

16.81

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
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.

JKHY

6.16

Financial Services Industry

Max
7.93
Q3
3.78
Median
1.49
Q1
0.88
Min
0.08

JKHY’s P/B Ratio of 6.16 is in the upper tier for the Financial Services 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.

CDNS vs. JKHY: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Financial Services industry benchmarks.

Valuation at a Glance

SymbolCDNSJKHY
Price-to-Earnings Ratio (TTM)93.5023.40
Price-to-Sales Ratio (TTM)18.594.49
Price-to-Book Ratio (MRQ)16.816.16
Price-to-Free Cash Flow Ratio (TTM)59.6925.99