CDNS vs. SNPS: Cadence Design Systems vs. Synopsys Stock Comparison
How do Cadence Design Systems (CDNS) and Synopsys (SNPS) 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 Synopsys (SNPS) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | CDNS | SNPS |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Synopsys Inc. |
| 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 | 86.32 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | February 26, 1992 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| Total Return (1Y) | 3.07% | 18.77% |
| Total Return (3Y, Annualized) | 9.32% | -2.57% |
| Total Return (5Y, Annualized) | 12.93% | 6.06% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 45.03% |
| Beta (5Y) | 1.09 | 1.17 |
| Max Drawdown (5Y) | -34.21% | -43.02% |
| Avg. Volume (3M) | 2.41M | 2.11M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | 0.32 |
| Sortino Ratio (1Y) | -0.04 | 0.49 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Synopsys (SNPS) at 3.66% is closer to the peer norm — stronger capital efficiency for CDNS.
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%
SNPS
Software & Services industry group
3.66%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- SNPS
- 3.66%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Cadence Design Systems (CDNS) at 22.52% retains a top-quartile share of revenue as profit, ahead of Synopsys (SNPS) at 11.43%, which keeps about the industry-typical 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%
SNPS
Software & Services industry group
11.43%
- Max
- 41.17%
- Q3
- 15.28%
- SNPS
- 11.43%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Cadence Design Systems (CDNS) at 28.93% operates in the top operating margin quartile, ahead of Synopsys (SNPS) at 14.52%, which runs around its industry’s norm.
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%
SNPS
Software & Services industry group
14.52%
- Max
- 46.89%
- Q3
- 17.64%
- SNPS
- 14.52%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| ROE (TTM) | 22.87% | 3.66% |
| ROA (TTM) | 10.52% | 1.35% |
| Net Margin (TTM) | 22.52% | 11.43% |
| Operating Margin (TTM) | 28.93% | 14.52% |
| Gross Margin (TTM) | 85.68% | 82.92% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Synopsys (SNPS) at 15.12% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Cadence Design Systems (CDNS) at 5.45% is around its peer norm for EPS growth, while Synopsys (SNPS) at -44.59% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 15.12% |
| Revenue Growth (3Y CAGR) | 14.14% | 15.19% |
| EPS Growth (YoY) | 5.45% | -44.59% |
| EPS Growth (3Y CAGR) | 9.53% | 8.53% |
Financial Strength
Current Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 1.36 and Synopsys (SNPS) at 1.34 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
SNPS
Software & Services industry group
1.34
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- SNPS
- 1.34
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Synopsys (SNPS) at 0.35 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
SNPS
Software & Services industry group
0.35
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- SNPS
- 0.35
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 1.34 |
| Debt / Equity (MRQ) | 0.41 | 0.35 |
| Net Debt / EBITDA | 0.57 | 3.49 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Synopsys (SNPS) 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%
SNPS
Software & Services industry group
0.00%
- SNPS
- 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 Synopsys (SNPS) 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%
SNPS
Software & Services industry group
0.00%
- SNPS
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| 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 Synopsys (SNPS) at 79.59 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
SNPS
Software & Services industry group
79.59
- Max
- 112.94
- SNPS
- 79.59
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both Cadence Design Systems (CDNS) at 14.31 and Synopsys (SNPS) at 9.17 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
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
SNPS
Software & Services industry group
9.17
- Max
- 17.91
- SNPS
- 9.17
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Synopsys (SNPS) at 2.77 is valued about in line with its industry on P/B ratio, while Cadence Design Systems (CDNS) at 12.77 carries an above-peer premium to book — CDNS is pricier on assets.
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
SNPS
Software & Services industry group
2.77
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- SNPS
- 2.77
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | SNPS |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 79.59 |
| P/S Ratio (TTM) | 14.31 | 9.17 |
| P/B Ratio (MRQ) | 12.77 | 2.77 |
| Free Cash Flow Yield (TTM) | 1.99% | 3.97% |