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.
| Profile Item | CDNS | PLTR |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Palantir Technologies 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 | Software |
| GICS Sub-Industry | Application Software | Application Software |
| Market Capitalization | 87.78 billion USD | 386.44 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | September 30, 2020 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 60.50% |
| Beta (5Y) | 1.09 | 1.63 |
| Max Drawdown (5Y) | -34.21% | -75.26% |
| Avg. Volume (3M) | 2.41M | 27.20M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| 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%
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%
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%
Profitability Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 7.10 |
| Debt / Equity (MRQ) | 0.41 | 0.02 |
| Net Debt / EBITDA | 0.57 | -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%
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%
Dividend Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | CDNS | PLTR |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 112.94 |
| P/S Ratio (TTM) | 14.31 | 53.02 |
| P/B Ratio (MRQ) | 12.77 | 34.41 |
| Free Cash Flow Yield (TTM) | 1.99% | 0.69% |