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

Updated on October 4, 2025

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

Company Profile

CDNS is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

Symbol	CDNS	NTES
Company Name	Cadence Design Systems, Inc.	NetEase, Inc.
Country	United States	China
GICS Sector	Information Technology	Communication Services
GICS Industry	Software	Entertainment
Market Capitalization	95.91 billion USD	94.99 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	June 10, 1987	June 30, 2000
Security Type	Common Stock	ADR

Historical Performance

This chart compares the performance of CDNS and NTES 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. NTES: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	CDNS	NTES
5-Day Price Return	0.26%	-0.58%
13-Week Price Return	13.74%	11.31%
26-Week Price Return	34.06%	47.44%
52-Week Price Return	29.86%	60.43%
Month-to-Date Return	0.20%	-1.30%
Year-to-Date Return	17.14%	68.17%
10-Day Avg. Volume	1.84M	0.71M
3-Month Avg. Volume	1.85M	0.81M
3-Month Volatility	35.79%	29.21%
Beta	1.05	0.70

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.

NTES

24.25%

Entertainment Industry

Max: 42.50%
Q3: 24.06%
Median: 13.69%
Q1: 5.35%
Min: -17.95%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CDNS vs. NTES: A comparison of their Return on Equity (TTM) against their respective Software and Entertainment 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.

NTES

31.19%

Entertainment Industry

Max: 45.33%
Q3: 24.40%
Median: 13.94%
Q1: 4.28%
Min: -23.67%

A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

CDNS vs. NTES: A comparison of their Net Profit Margin (TTM) against their respective Software and Entertainment 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.

NTES

31.43%

Entertainment Industry

Max: 41.77%
Q3: 28.26%
Median: 16.13%
Q1: 8.03%
Min: -3.93%

An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

Symbol	CDNS	NTES
Return on Equity (TTM)	21.28%	24.25%
Return on Assets (TTM)	11.04%	17.31%
Net Profit Margin (TTM)	19.88%	31.19%
Operating Profit Margin (TTM)	30.24%	31.43%
Gross Profit Margin (TTM)	85.57%	63.17%

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.

NTES

3.23

Entertainment Industry

Max: 6.76
Q3: 4.02
Median: 1.55
Q1: 0.86
Min: 0.38

NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

CDNS vs. NTES: A comparison of their Current Ratio (MRQ) against their respective Software and Entertainment 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.

NTES

0.08

Entertainment Industry

Max: 1.54
Q3: 0.77
Median: 0.16
Q1: 0.02
Min: 0.00

NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CDNS vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Entertainment 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.

NTES

161.13

Entertainment Industry

Max: 87.17
Q3: 35.59
Median: 7.06
Q1: 1.13
Min: -44.74

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

Symbol	CDNS	NTES
Current Ratio (MRQ)	2.82	3.23
Quick Ratio (MRQ)	2.33	3.10
Debt-to-Equity Ratio (MRQ)	0.50	0.08
Interest Coverage Ratio (TTM)	39.06	161.13

Growth

Revenue Growth

CDNS vs. NTES: 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. NTES: 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.

NTES

1.90%

Entertainment Industry

Max: 2.90%
Q3: 1.29%
Median: 0.59%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.90%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

CDNS vs. NTES: A comparison of their Dividend Yield (TTM) against their respective Software and Entertainment 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.

NTES

36.90%

Entertainment Industry

Max: 82.30%
Q3: 38.45%
Median: 29.74%
Q1: 0.00%
Min: 0.00%

NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

Symbol	CDNS	NTES
Dividend Yield (TTM)	0.00%	1.90%
Dividend Payout Ratio (TTM)	0.00%	36.90%

Valuation

Price-to-Earnings Ratio (TTM)

CDNS

94.22

Software Industry

Max: 145.74
Q3: 94.88
Median: 45.35
Q1: 26.66
Min: 8.80

CDNS’s P/E Ratio of 94.22 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.

NTES

19.44

Entertainment Industry

Max: 92.09
Q3: 54.51
Median: 28.92
Q1: 19.75
Min: 2.96

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 19.44 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

Price-to-Sales Ratio (TTM)

CDNS

18.73

Software Industry

Max: 25.67
Q3: 13.68
Median: 8.28
Q1: 4.95
Min: 0.90

CDNS’s P/S Ratio of 18.73 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.

NTES

6.06

Entertainment Industry

Max: 12.34
Q3: 7.67
Median: 5.06
Q1: 2.72
Min: 0.67

NTES’s P/S Ratio of 6.06 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CDNS vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Entertainment 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.

NTES

4.06

Entertainment Industry

Max: 22.84
Q3: 10.54
Median: 6.60
Q1: 2.30
Min: 0.65

NTES’s P/B Ratio of 4.06 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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

Valuation at a Glance

Symbol	CDNS	NTES
Price-to-Earnings Ratio (TTM)	94.22	19.44
Price-to-Sales Ratio (TTM)	18.73	6.06
Price-to-Book Ratio (MRQ)	16.81	4.06
Price-to-Free Cash Flow Ratio (TTM)	60.15	15.02