CDNS vs. SAP: Cadence Design Systems vs. SAP Stock Comparison

November 11, 2026

How do Cadence Design Systems (CDNS) and SAP (SAP) 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 SAP (SAP) 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) trades as ordinary local shares, while SAP (SAP) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Cadence Design Systems (CDNS) and SAP (SAP)
Profile Item	CDNS	SAP
Name	Cadence Design Systems, Inc.	SAP SE Sponsored ADR
Country/Region	United States	Germany
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	269.45 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	June 10, 1987	September 18, 1995
Security Type	Common Stock	ADR

Price Performance

Cumulative Growth

CDNS

SAP

GSPC

Cadence Design Systems (CDNS) vs. SAP (SAP), 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 SAP (SAP). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cadence Design Systems (CDNS) and SAP (SAP). 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 SAP (SAP)
Metric	CDNS	SAP
Total Return (1Y)	3.07%	-3.87%
Total Return (3Y, Annualized)	9.32%	20.21%
Total Return (5Y, Annualized)	12.93%	11.79%

Risk Profile

Drawdown History

CDNS

SAP

GSPC

Cadence Design Systems (CDNS) vs. SAP (SAP), 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 SAP (SAP). 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 SAP (SAP)
Metric	CDNS	SAP
Volatility (1Y, Annualized)	42.21%	39.05%
Beta (5Y)	1.09	1.09
Max Drawdown (5Y)	-34.21%	-52.26%
Avg. Volume (3M)	2.41M	2.27M

Risk-Adjusted Performance

Risk-Return Positioning

CDNS and SAP 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 SAP (SAP)
Metric	CDNS	SAP
Sharpe Ratio (1Y)	-0.03	-0.21
Sortino Ratio (1Y)	-0.04	-0.29

Profitability

ROE (TTM)

Both Cadence Design Systems (CDNS) at 22.87% and SAP (SAP) at 18.18% 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%

SAP

Software & Services industry group

18.18%

Max: 53.85%
SAP: 18.18%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Cadence Design Systems (CDNS) vs. SAP (SAP): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Cadence Design Systems (CDNS) at 22.52% and SAP (SAP) at 20.41% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

SAP

Software & Services industry group

20.41%

Max: 41.17%
SAP: 20.41%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Cadence Design Systems (CDNS) vs. SAP (SAP): 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 SAP (SAP) at 29.50% 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%

SAP

Software & Services industry group

29.50%

Max: 46.89%
SAP: 29.50%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Cadence Design Systems (CDNS) vs. SAP (SAP): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cadence Design Systems (CDNS) and SAP (SAP)
Metric	CDNS	SAP
ROE (TTM)	22.87%	18.18%
ROA (TTM)	10.52%	9.91%
Net Margin (TTM)	22.52%	20.41%
Operating Margin (TTM)	28.93%	29.50%
Gross Margin (TTM)	85.68%	73.58%

Growth

Revenue Growth

Both Cadence Design Systems (CDNS) at 14.12% and SAP (SAP) at 7.68% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

SAP (SAP) at 130.19% sits in the top EPS growth quartile, while Cadence Design Systems (CDNS) at 5.45% is closer to the peer norm — faster per-share earnings growth for SAP.

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

Growth Metrics

Growth metrics for Cadence Design Systems (CDNS) and SAP (SAP)
Metric	CDNS	SAP
Revenue Growth (YoY)	14.12%	7.68%
Revenue Growth (3Y CAGR)	14.14%	7.63%
EPS Growth (YoY)	5.45%	130.19%
EPS Growth (3Y CAGR)	9.53%	46.25%

Financial Strength

Current Ratio (MRQ)

Both Cadence Design Systems (CDNS) at 1.36 and SAP (SAP) at 1.16 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity 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

SAP

Software & Services industry group

1.16

Max: 5.11
Q3: 2.77
Median: 1.67
SAP: 1.16
Q1: 1.01
Min: 0.03

Cadence Design Systems (CDNS) vs. SAP (SAP): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Cadence Design Systems (CDNS) at 0.41 and SAP (SAP) at 0.23 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

SAP

Software & Services industry group

0.23

Max: 2.52
Q3: 1.13
Median: 0.40
SAP: 0.23
Q1: 0.07
Min: 0.00

Cadence Design Systems (CDNS) vs. SAP (SAP): 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 SAP (SAP)
Metric	CDNS	SAP
Current Ratio (MRQ)	1.36	1.16
Debt / Equity (MRQ)	0.41	0.23
Net Debt / EBITDA	0.57	-0.03

Dividends

Dividend Yield (TTM)

Cadence Design Systems (CDNS) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile SAP (SAP) reports a yield of 1.03%, ranking against industry peers normally.

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%

SAP

Software & Services industry group

1.03%

SAP: 1.03%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Cadence Design Systems (CDNS) vs. SAP (SAP): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Cadence Design Systems (CDNS) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile SAP (SAP) reports a payout of 36.45%, ranking against industry peers normally.

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%

SAP

Software & Services industry group

36.45%

SAP: 36.45%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Cadence Design Systems (CDNS) vs. SAP (SAP): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cadence Design Systems (CDNS) and SAP (SAP)
Metric	CDNS	SAP
Dividend Yield (TTM)	0.00%	1.03%
Dividend Payout Ratio (TTM)	0.00%	36.45%

Valuation

P/E Ratio (TTM)

SAP (SAP) at 29.07 is near its industry’s usual P/E ratio, while Cadence Design Systems (CDNS) at 63.60 sits in the richer quartile — CDNS needs stronger growth or earnings quality to justify the premium.

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

SAP

Software & Services industry group

29.07

Max: 112.94
Q3: 60.32
Median: 32.91
SAP: 29.07
Q1: 18.77
Min: 6.69

Cadence Design Systems (CDNS) vs. SAP (SAP): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

SAP (SAP) at 6.84 is priced about in line with its industry on P/S ratio, while Cadence Design Systems (CDNS) at 14.31 sits in the pricier quartile — CDNS costs more per dollar of sales.

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

SAP

Software & Services industry group

6.84

Max: 17.91
Q3: 8.78
SAP: 6.84
Median: 4.25
Q1: 2.23
Min: 0.02

Cadence Design Systems (CDNS) vs. SAP (SAP): 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 SAP (SAP) at 73.25 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

SAP

Software & Services industry group

73.25

SAP: 73.25
Max: 16.63
Q3: 8.50
Median: 4.30
Q1: 1.92
Min: -3.90

Cadence Design Systems (CDNS) vs. SAP (SAP): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cadence Design Systems (CDNS) and SAP (SAP)
Metric	CDNS	SAP
P/E Ratio (TTM)	63.60	29.07
P/S Ratio (TTM)	14.31	6.84
P/B Ratio (MRQ)	12.77	73.25
Free Cash Flow Yield (TTM)	1.99%	3.73%