CDNS vs. PAYC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CDNS and PAYC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CDNS | PAYC |
|---|---|---|
| Company Name | Cadence Design Systems, Inc. | Paycom Software, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Industrials |
| GICS Industry | Software | Professional Services |
| Market Capitalization | 95.91 billion USD | 12.24 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 10, 1987 | April 15, 2014 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CDNS and PAYC 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.
Historical Performance at a Glance
| Symbol | CDNS | PAYC |
|---|---|---|
| 5-Day Price Return | 0.26% | -4.27% |
| 13-Week Price Return | 13.74% | -10.05% |
| 26-Week Price Return | 34.06% | -6.55% |
| 52-Week Price Return | 29.86% | 24.04% |
| Month-to-Date Return | 0.20% | -8.37% |
| Year-to-Date Return | 17.14% | 1.55% |
| 10-Day Avg. Volume | 1.84M | 0.78M |
| 3-Month Avg. Volume | 1.85M | 0.63M |
| 3-Month Volatility | 35.79% | 29.85% |
| Beta | 1.05 | 0.89 |
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.
PAYC
25.35%
Professional Services Industry
- Max
- 68.01%
- Q3
- 35.32%
- Median
- 21.92%
- Q1
- 11.67%
- Min
- -20.25%
PAYC’s Return on Equity of 25.35% is on par with the norm for the Professional Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
PAYC
21.21%
Professional Services Industry
- Max
- 31.75%
- Q3
- 15.50%
- Median
- 8.95%
- Q1
- 4.51%
- Min
- 0.35%
A Net Profit Margin of 21.21% places PAYC in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
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.
PAYC
28.10%
Professional Services Industry
- Max
- 30.62%
- Q3
- 19.06%
- Median
- 13.60%
- Q1
- 8.60%
- Min
- -2.18%
An Operating Profit Margin of 28.10% places PAYC in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | CDNS | PAYC |
|---|---|---|
| Return on Equity (TTM) | 21.28% | 25.35% |
| Return on Assets (TTM) | 11.04% | 9.26% |
| Net Profit Margin (TTM) | 19.88% | 21.21% |
| Operating Profit Margin (TTM) | 30.24% | 28.10% |
| Gross Profit Margin (TTM) | 85.57% | 82.44% |
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.
PAYC
1.30
Professional Services Industry
- Max
- 2.28
- Q3
- 1.75
- Median
- 1.34
- Q1
- 1.10
- Min
- 0.47
PAYC’s Current Ratio of 1.30 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.
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.
PAYC
0.00
Professional Services Industry
- Max
- 2.93
- Q3
- 1.45
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.00
Falling into the lower quartile for the Professional Services industry, PAYC’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
PAYC
191.88
Professional Services Industry
- Max
- 39.45
- Q3
- 20.41
- Median
- 11.64
- Q1
- 5.46
- Min
- -1.21
With an Interest Coverage Ratio of 191.88, PAYC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Professional Services industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | CDNS | PAYC |
|---|---|---|
| Current Ratio (MRQ) | 2.82 | 1.30 |
| Quick Ratio (MRQ) | 2.33 | 1.27 |
| Debt-to-Equity Ratio (MRQ) | 0.50 | 0.00 |
| Interest Coverage Ratio (TTM) | 39.06 | 191.88 |
Growth
Revenue Growth
EPS Growth
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.
PAYC
0.71%
Professional Services Industry
- Max
- 4.83%
- Q3
- 2.44%
- Median
- 1.52%
- Q1
- 0.52%
- Min
- 0.00%
PAYC’s Dividend Yield of 0.71% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
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.
PAYC
20.52%
Professional Services Industry
- Max
- 128.51%
- Q3
- 69.03%
- Median
- 47.00%
- Q1
- 18.05%
- Min
- 0.00%
PAYC’s Dividend Payout Ratio of 20.52% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CDNS | PAYC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.71% |
| Dividend Payout Ratio (TTM) | 0.00% | 20.52% |
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.
PAYC
28.98
Professional Services Industry
- Max
- 52.60
- Q3
- 33.83
- Median
- 24.95
- Q1
- 17.59
- Min
- 7.96
PAYC’s P/E Ratio of 28.98 is within the middle range for the Professional 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.
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.
PAYC
6.15
Professional Services Industry
- Max
- 8.27
- Q3
- 4.40
- Median
- 2.09
- Q1
- 0.99
- Min
- 0.17
PAYC’s P/S Ratio of 6.15 is in the upper echelon for the Professional Services 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.
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.
PAYC
7.19
Professional Services Industry
- Max
- 18.75
- Q3
- 9.53
- Median
- 5.88
- Q1
- 2.95
- Min
- 0.59
PAYC’s P/B Ratio of 7.19 is within the conventional range for the Professional Services 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.
Valuation at a Glance
| Symbol | CDNS | PAYC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 94.22 | 28.98 |
| Price-to-Sales Ratio (TTM) | 18.73 | 6.15 |
| Price-to-Book Ratio (MRQ) | 16.81 | 7.19 |
| Price-to-Free Cash Flow Ratio (TTM) | 60.15 | 33.95 |