CDNS vs. NET: Cadence Design Systems vs. Cloudflare Stock Comparison
How do Cadence Design Systems (CDNS) and Cloudflare (NET) 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 Cloudflare (NET) both fall under the Software & Services industry group, but CDNS is classified in Software while NET is classified in IT Services.
| Profile Item | CDNS | NET |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Cloudflare, Inc. Class A Common Stock |
| 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 | Internet Services & Infrastructure |
| Market Capitalization | 87.78 billion USD | 96.32 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | June 10, 1987 | September 13, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | NET |
|---|---|---|
| Total Return (1Y) | 3.07% | 27.13% |
| Total Return (3Y, Annualized) | 9.32% | 68.21% |
| Total Return (5Y, Annualized) | 12.93% | 7.66% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | NET |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 67.16% |
| Beta (5Y) | 1.09 | 1.34 |
| Max Drawdown (5Y) | -34.21% | -82.58% |
| Avg. Volume (3M) | 2.41M | 3.45M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | NET |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | 0.34 |
| Sortino Ratio (1Y) | -0.04 | 0.48 |
Profitability
ROE (TTM)
Cloudflare (NET) reports a negative ROE of -17.00%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Cadence Design Systems (CDNS) reports 22.87%, ranking against industry peers normally.
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%
NET
Software & Services industry group
-17.00%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- NET
- -17.00%
- Min
- -50.52%
Net Margin (TTM)
Cloudflare (NET) reports a negative net margin of -8.75%, usually indicating a net loss over the period. Meanwhile Cadence Design Systems (CDNS) reports 22.52%, ranking against industry peers normally.
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%
NET
Software & Services industry group
-8.75%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- NET
- -8.75%
- Min
- -33.17%
Operating Margin (TTM)
Cloudflare (NET) reports a negative operating margin of -7.27%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Cadence Design Systems (CDNS) reports 28.93%, ranking against industry peers normally.
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%
NET
Software & Services industry group
-7.27%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- NET
- -7.27%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | NET |
|---|---|---|
| ROE (TTM) | 22.87% | -17.00% |
| ROA (TTM) | 10.52% | -2.00% |
| Net Margin (TTM) | 22.52% | -8.75% |
| Operating Margin (TTM) | 28.93% | -7.27% |
| Gross Margin (TTM) | 85.68% | 71.90% |
Growth
Revenue Growth
Cloudflare (NET) at 29.85% sits in the top revenue growth quartile, while Cadence Design Systems (CDNS) at 14.12% is closer to the peer norm — faster top-line expansion for NET.
EPS Growth
Only one side can be read here: Cadence Design Systems (CDNS) reports EPS growth of 5.45%, ranked against its industry; Cloudflare (NET) has no EPS growth figure this period.
Growth Metrics
| Metric | CDNS | NET |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 29.85% |
| Revenue Growth (3Y CAGR) | 14.14% | 30.51% |
| EPS Growth (YoY) | 5.45% | -- |
| EPS Growth (3Y CAGR) | 9.53% | -- |
Financial Strength
Current Ratio (MRQ)
Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while Cloudflare (NET) at 3.80 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
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
NET
Software & Services industry group
3.80
- Max
- 5.11
- NET
- 3.80
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Cadence Design Systems (CDNS) at 0.41 is near its industry mid-range for debt-to-equity ratio, while Cloudflare (NET) at 3.21 sits above its benchmark range, pointing to a heavier debt load relative to equity.
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
NET
Software & Services industry group
3.21
- NET
- 3.21
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | NET |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 3.80 |
| Debt / Equity (MRQ) | 0.41 | 3.21 |
| Net Debt / EBITDA | 0.57 | -- |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Cloudflare (NET) 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%
NET
Software & Services industry group
0.00%
- NET
- 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 Cloudflare (NET) 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%
NET
Software & Services industry group
0.00%
- NET
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | NET |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
An earnings multiple is available for just one side: Cadence Design Systems (CDNS) trades at 63.60 times trailing earnings, ranked against its peers, while Cloudflare (NET) has no P/E ratio this period.
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
NET
Software & Services industry group
--
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
- NET
- --
P/S Ratio (TTM)
Both look expensive on sales: Cadence Design Systems (CDNS) at 14.31 sits in the upper P/S ratio quartile, and Cloudflare (NET) at 35.24 prices even higher, above its industry range.
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
NET
Software & Services industry group
35.24
- NET
- 35.24
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both look rich against book: Cadence Design Systems (CDNS) at 12.77 sits in the upper P/B ratio quartile, and Cloudflare (NET) at 65.73 prices even higher, above its industry range.
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
NET
Software & Services industry group
65.73
- NET
- 65.73
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | NET |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | -- |
| P/S Ratio (TTM) | 14.31 | 35.24 |
| P/B Ratio (MRQ) | 12.77 | 65.73 |
| Free Cash Flow Yield (TTM) | 1.99% | 0.83% |