CDNS vs. PANW: Cadence Design Systems vs. Palo Alto Networks Stock Comparison
How do Cadence Design Systems (CDNS) and Palo Alto Networks (PANW) 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 Palo Alto Networks (PANW) both belong to the Software industry, though CDNS is classified under Application Software while PANW falls under Systems Software.
| Profile Item | CDNS | PANW |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Palo Alto Networks, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Systems Software |
| Market Capitalization | 87.78 billion USD | 256.86 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | PANW |
|---|---|---|
| Total Return (1Y) | 3.07% | 53.99% |
| Total Return (3Y, Annualized) | 9.32% | 39.16% |
| Total Return (5Y, Annualized) | 12.93% | 30.80% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | PANW |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 51.34% |
| Beta (5Y) | 1.09 | 1.00 |
| Max Drawdown (5Y) | -34.21% | -36.01% |
| Avg. Volume (3M) | 2.41M | 6.03M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | PANW |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | 0.97 |
| Sortino Ratio (1Y) | -0.04 | 1.49 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Palo Alto Networks (PANW) at 1.74% 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%
PANW
Software & Services industry group
1.74%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- PANW
- 1.74%
- 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 Palo Alto Networks (PANW) at 2.67%, 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%
PANW
Software & Services industry group
2.67%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- PANW
- 2.67%
- 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 Palo Alto Networks (PANW) at 5.40%, 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%
PANW
Software & Services industry group
5.40%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- PANW
- 5.40%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | PANW |
|---|---|---|
| ROE (TTM) | 22.87% | 1.74% |
| ROA (TTM) | 10.52% | 1.40% |
| Net Margin (TTM) | 22.52% | 2.67% |
| Operating Margin (TTM) | 28.93% | 5.40% |
| Gross Margin (TTM) | 85.68% | 70.38% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Palo Alto Networks (PANW) at 24.50% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Cadence Design Systems (CDNS) at 5.45% is around its peer norm for EPS growth, while Palo Alto Networks (PANW) at -75.00% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | CDNS | PANW |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 24.50% |
| Revenue Growth (3Y CAGR) | 14.14% | 18.54% |
| EPS Growth (YoY) | 5.45% | -75.00% |
| EPS Growth (3Y CAGR) | 9.53% | -14.50% |
Financial Strength
Current Ratio (MRQ)
Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PANW.
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
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- PANW
- 0.87
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Palo Alto Networks (PANW) at 0.09 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- PANW
- 0.09
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | PANW |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 0.87 |
| Debt / Equity (MRQ) | 0.41 | 0.09 |
| Net Debt / EBITDA | 0.57 | -0.32 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Palo Alto Networks (PANW) 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%
PANW
Software & Services industry group
0.00%
- PANW
- 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 Palo Alto Networks (PANW) 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%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both look expensive on trailing earnings: Cadence Design Systems (CDNS) at 63.60 sits in the richer P/E ratio quartile, and Palo Alto Networks (PANW) at 784.60 is richer still, above its industry range.
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
PANW
Software & Services industry group
784.60
- PANW
- 784.60
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
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 Palo Alto Networks (PANW) at 22.37 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
PANW
Software & Services industry group
22.37
- PANW
- 22.37
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 12.77 and Palo Alto Networks (PANW) at 9.30 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
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
PANW
Software & Services industry group
9.30
- Max
- 16.63
- PANW
- 9.30
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | PANW |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 784.60 |
| P/S Ratio (TTM) | 14.31 | 22.37 |
| P/B Ratio (MRQ) | 12.77 | 9.30 |
| Free Cash Flow Yield (TTM) | 1.99% | 1.65% |