CDNS vs. OKTA: Cadence Design Systems vs. Okta Stock Comparison
How do Cadence Design Systems (CDNS) and Okta (OKTA) 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 Okta (OKTA) both fall under the Software & Services industry group, but CDNS is classified in Software while OKTA is classified in IT Services.
| Profile Item | CDNS | OKTA |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Okta 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 | 29.49 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | April 7, 2017 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| Total Return (1Y) | 3.07% | 108.64% |
| Total Return (3Y, Annualized) | 9.32% | 38.93% |
| Total Return (5Y, Annualized) | 12.93% | -7.90% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 70.25% |
| Beta (5Y) | 1.09 | 0.76 |
| Max Drawdown (5Y) | -34.21% | -83.22% |
| Avg. Volume (3M) | 2.41M | 4.23M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | 1.49 |
| Sortino Ratio (1Y) | -0.04 | 2.65 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Okta (OKTA) at 4.31% is closer to the peer norm — stronger capital efficiency for CDNS.
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%
OKTA
Software & Services industry group
4.31%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- OKTA
- 4.31%
- 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 Okta (OKTA) at 9.63%, 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%
OKTA
Software & Services industry group
9.63%
- Max
- 41.17%
- Q3
- 15.28%
- OKTA
- 9.63%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Cadence Design Systems (CDNS) at 28.93% operates in the top operating margin quartile, ahead of Okta (OKTA) at 13.29%, which runs around its industry’s norm.
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%
OKTA
Software & Services industry group
13.29%
- Max
- 46.89%
- Q3
- 17.64%
- OKTA
- 13.29%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| ROE (TTM) | 22.87% | 4.31% |
| ROA (TTM) | 10.52% | 1.58% |
| Net Margin (TTM) | 22.52% | 9.63% |
| Operating Margin (TTM) | 28.93% | 13.29% |
| Gross Margin (TTM) | 85.68% | 78.13% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Okta (OKTA) at 11.84% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Okta (OKTA) at 2,083.33% clears its industry range for EPS growth, a much stronger earnings trajectory than Cadence Design Systems (CDNS) at 5.45%, which is closer to a typical peer reading.
Growth Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 11.84% |
| Revenue Growth (3Y CAGR) | 14.14% | 16.25% |
| EPS Growth (YoY) | 5.45% | 2,083.33% |
| EPS Growth (3Y CAGR) | 9.53% | -- |
Financial Strength
Current Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 1.36 and Okta (OKTA) at 1.53 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity 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
OKTA
Software & Services industry group
1.53
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- OKTA
- 1.53
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Okta (OKTA) at 0.01 keeps leverage in the lower industry quartile, while Cadence Design Systems (CDNS) at 0.41 runs a more typical debt-to-equity mix.
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
OKTA
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- OKTA
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 1.53 |
| Debt / Equity (MRQ) | 0.41 | 0.01 |
| Net Debt / EBITDA | 0.57 | -7.00 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Okta (OKTA) 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%
OKTA
Software & Services industry group
0.00%
- OKTA
- 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 Okta (OKTA) 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%
OKTA
Software & Services industry group
0.00%
- OKTA
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both Cadence Design Systems (CDNS) at 63.60 and Okta (OKTA) at 101.62 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.
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
OKTA
Software & Services industry group
101.62
- Max
- 112.94
- OKTA
- 101.62
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both Cadence Design Systems (CDNS) at 14.31 and Okta (OKTA) at 9.60 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
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
OKTA
Software & Services industry group
9.60
- Max
- 17.91
- OKTA
- 9.60
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Okta (OKTA) at 4.23 is valued about in line with its industry on P/B ratio, while Cadence Design Systems (CDNS) at 12.77 carries an above-peer premium to book — CDNS is pricier on assets.
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
OKTA
Software & Services industry group
4.23
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- OKTA
- 4.23
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | OKTA |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 101.62 |
| P/S Ratio (TTM) | 14.31 | 9.60 |
| P/B Ratio (MRQ) | 12.77 | 4.23 |
| Free Cash Flow Yield (TTM) | 1.99% | 3.52% |