CDNS vs. QXO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CDNS and QXO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CDNS | QXO |
|---|---|---|
| Company Name | Cadence Design Systems, Inc. | QXO, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Industrials |
| GICS Industry | Software | Trading Companies & Distributors |
| Market Capitalization | 95.91 billion USD | 12.58 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 10, 1987 | April 17, 2012 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CDNS and QXO 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 | QXO |
|---|---|---|
| 5-Day Price Return | 0.26% | -0.94% |
| 13-Week Price Return | 13.74% | -11.51% |
| 26-Week Price Return | 34.06% | 40.56% |
| 52-Week Price Return | 29.86% | 21.17% |
| Month-to-Date Return | 0.20% | -5.32% |
| Year-to-Date Return | 17.14% | 19.87% |
| 10-Day Avg. Volume | 1.84M | 8.80M |
| 3-Month Avg. Volume | 1.85M | 9.04M |
| 3-Month Volatility | 35.79% | 40.04% |
| Beta | 1.05 | 2.17 |
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.
QXO
-0.34%
Trading Companies & Distributors Industry
- Max
- 32.99%
- Q3
- 19.66%
- Median
- 13.72%
- Q1
- 9.74%
- Min
- -0.34%
QXO has a negative Return on Equity of -0.34%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
QXO
-1.09%
Trading Companies & Distributors Industry
- Max
- 16.11%
- Q3
- 9.48%
- Median
- 5.89%
- Q1
- 3.68%
- Min
- -1.09%
QXO has a negative Net Profit Margin of -1.09%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
QXO
-16.12%
Trading Companies & Distributors Industry
- Max
- 26.26%
- Q3
- 14.59%
- Median
- 7.05%
- Q1
- 4.94%
- Min
- -8.06%
QXO has a negative Operating Profit Margin of -16.12%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | CDNS | QXO |
|---|---|---|
| Return on Equity (TTM) | 21.28% | -0.34% |
| Return on Assets (TTM) | 11.04% | -0.26% |
| Net Profit Margin (TTM) | 19.88% | -1.09% |
| Operating Profit Margin (TTM) | 30.24% | -16.12% |
| Gross Profit Margin (TTM) | 85.57% | 21.49% |
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.
QXO
3.00
Trading Companies & Distributors Industry
- Max
- 3.32
- Q3
- 2.27
- Median
- 1.60
- Q1
- 1.41
- Min
- 0.26
QXO’s Current Ratio of 3.00 is in the upper quartile for the Trading Companies & Distributors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.
QXO
0.35
Trading Companies & Distributors Industry
- Max
- 1.93
- Q3
- 1.24
- Median
- 0.79
- Q1
- 0.61
- Min
- 0.01
Falling into the lower quartile for the Trading Companies & Distributors industry, QXO’s Debt-to-Equity Ratio of 0.35 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.
QXO
-23.41
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.67
- Q1
- 2.04
- Min
- -1.67
QXO has a negative Interest Coverage Ratio of -23.41. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | CDNS | QXO |
|---|---|---|
| Current Ratio (MRQ) | 2.82 | 3.00 |
| Quick Ratio (MRQ) | 2.33 | 2.10 |
| Debt-to-Equity Ratio (MRQ) | 0.50 | 0.35 |
| Interest Coverage Ratio (TTM) | 39.06 | -23.41 |
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.
QXO
0.61%
Trading Companies & Distributors Industry
- Max
- 5.25%
- Q3
- 2.95%
- Median
- 2.06%
- Q1
- 1.11%
- Min
- 0.00%
QXO’s Dividend Yield of 0.61% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
QXO
0.00%
Trading Companies & Distributors Industry
- Max
- 136.12%
- Q3
- 71.34%
- Median
- 47.49%
- Q1
- 22.56%
- Min
- 0.00%
QXO 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.
Dividend at a Glance
| Symbol | CDNS | QXO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.61% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
QXO
--
Trading Companies & Distributors Industry
- Max
- 42.69
- Q3
- 25.21
- Median
- 16.99
- Q1
- 13.13
- Min
- 5.35
P/E Ratio data for QXO is currently unavailable.
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.
QXO
6.50
Trading Companies & Distributors Industry
- Max
- 4.90
- Q3
- 2.71
- Median
- 1.06
- Q1
- 0.70
- Min
- 0.30
With a P/S Ratio of 6.50, QXO trades at a valuation that eclipses even the highest in the Trading Companies & Distributors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
QXO
1.46
Trading Companies & Distributors Industry
- Max
- 7.55
- Q3
- 4.63
- Median
- 2.09
- Q1
- 1.30
- Min
- 0.31
QXO’s P/B Ratio of 1.46 is within the conventional range for the Trading Companies & Distributors 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 | QXO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 94.22 | -- |
| Price-to-Sales Ratio (TTM) | 18.73 | 6.50 |
| Price-to-Book Ratio (MRQ) | 16.81 | 1.46 |
| Price-to-Free Cash Flow Ratio (TTM) | 60.15 | 104.40 |