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CDNS vs. PLTR: Cadence Design Systems vs. Palantir Stock Comparison

How do Cadence Design Systems (CDNS) and Palantir (PLTR) 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 Palantir (PLTR) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.

Cadence Design Systems (CDNS) has more than two decades of public-market history since June 10, 1987, whereas Palantir (PLTR) listed on September 30, 2020 and has a much shorter record to draw on.

Company profile comparison for Cadence Design Systems (CDNS) and Palantir (PLTR)
Profile ItemCDNSPLTR
NameCadence Design Systems, Inc.Palantir Technologies Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustryApplication SoftwareApplication Software
Market Capitalization87.78 billion USD386.44 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJune 10, 1987September 30, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CDNS
PLTR
GSPC
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Cadence Design Systems (CDNS) vs. Palantir (PLTR), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cadence Design Systems (CDNS) and Palantir (PLTR). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cadence Design Systems (CDNS) and Palantir (PLTR). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
Total Return (1Y)3.07%-4.94%
Total Return (3Y, Annualized)9.32%109.97%
Total Return (5Y, Annualized)12.93%47.47%

Risk Profile

Drawdown History

CDNS
PLTR
GSPC
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Cadence Design Systems (CDNS) vs. Palantir (PLTR), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cadence Design Systems (CDNS) and Palantir (PLTR). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
Volatility (1Y, Annualized)42.21%60.50%
Beta (5Y)1.091.63
Max Drawdown (5Y)-34.21%-75.26%
Avg. Volume (3M)2.41M27.20M

Risk-Adjusted Performance

Risk-Return Positioning

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CDNS and PLTR are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
Sharpe Ratio (1Y)-0.03-0.15
Sortino Ratio (1Y)-0.04-0.24

Profitability

ROE (TTM)

Both Cadence Design Systems (CDNS) at 22.87% and Palantir (PLTR) at 40.91% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

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%

PLTR

Software & Services industry group

40.91%

Max
53.85%
PLTR
40.91%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Palantir (PLTR) at 50.34% keeps the most of each sales dollar — above its industry’s net margin range — and Cadence Design Systems (CDNS) at 22.52% also retains a top-quartile 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%

PLTR

Software & Services industry group

50.34%

PLTR
50.34%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Cadence Design Systems (CDNS) at 28.93% and Palantir (PLTR) at 46.89% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

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%

PLTR

Software & Services industry group

46.89%

PLTR
46.89%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
ROE (TTM)22.87%40.91%
ROA (TTM)10.52%19.31%
Net Margin (TTM)22.52%50.34%
Operating Margin (TTM)28.93%46.89%
Gross Margin (TTM)85.68%84.74%

Growth

Revenue Growth

Palantir (PLTR) at 56.18% clears its industry range for revenue growth, far stronger top-line momentum than Cadence Design Systems (CDNS) at 14.12%, which is closer to a typical peer reading.

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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their Revenue Growth across different time periods.

EPS Growth

Palantir (PLTR) at 231.06% 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.

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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
Revenue Growth (YoY)14.12%56.18%
Revenue Growth (3Y CAGR)14.14%32.92%
EPS Growth (YoY)5.45%231.06%
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 Palantir (PLTR) at 7.10 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

PLTR

Software & Services industry group

7.10

PLTR
7.10
Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Palantir (PLTR) at 0.02 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

PLTR

Software & Services industry group

0.02

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
PLTR
0.02
Min
0.00
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
Current Ratio (MRQ)1.367.10
Debt / Equity (MRQ)0.410.02
Net Debt / EBITDA0.57-3.08

Dividends

Dividend Yield (TTM)

Neither Cadence Design Systems (CDNS) nor Palantir (PLTR) 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%

PLTR

Software & Services industry group

0.00%

PLTR
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Cadence Design Systems (CDNS) nor Palantir (PLTR) 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%

PLTR

Software & Services industry group

0.00%

PLTR
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
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 Palantir (PLTR) at 112.94 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

PLTR

Software & Services industry group

112.94

PLTR
112.94
Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
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Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their P/E ratio against the Software & Services industry group benchmark.

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 Palantir (PLTR) at 53.02 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

PLTR

Software & Services industry group

53.02

PLTR
53.02
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
Loading chart…
Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their P/S ratio against the Software & Services industry group benchmark.

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 Palantir (PLTR) at 34.41 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

PLTR

Software & Services industry group

34.41

PLTR
34.41
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
Loading chart…
Cadence Design Systems (CDNS) vs. Palantir (PLTR): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cadence Design Systems (CDNS) and Palantir (PLTR)
MetricCDNSPLTR
P/E Ratio (TTM)63.60112.94
P/S Ratio (TTM)14.3153.02
P/B Ratio (MRQ)12.7734.41
Free Cash Flow Yield (TTM)1.99%0.69%