CDNS vs. STX: A Head-to-Head Stock Comparison

Updated on October 4, 2025

Here’s a clear look at CDNS and STX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	CDNS	STX
Company Name	Cadence Design Systems, Inc.	Seagate Technology Holdings plc
Country	United States	Singapore
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	Technology Hardware, Storage & Peripherals
Market Capitalization	95.91 billion USD	54.70 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	June 10, 1987	December 11, 2002
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of CDNS and STX 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.

CDNS vs. STX: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	CDNS	STX
5-Day Price Return	0.26%	5.53%
13-Week Price Return	13.74%	63.56%
26-Week Price Return	34.06%	169.38%
52-Week Price Return	29.86%	117.09%
Month-to-Date Return	0.20%	41.02%
Year-to-Date Return	17.14%	173.50%
10-Day Avg. Volume	1.84M	4.19M
3-Month Avg. Volume	1.85M	3.97M
3-Month Volatility	35.79%	36.57%
Beta	1.05	1.66

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.

STX

398.07%

Technology Hardware, Storage & Peripherals Industry

Max: 56.93%
Q3: 27.52%
Median: 9.18%
Q1: 5.14%
Min: -1.04%

STX’s Return on Equity of 398.07% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CDNS vs. STX: A comparison of their Return on Equity (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

STX

16.15%

Technology Hardware, Storage & Peripherals Industry

Max: 16.15%
Q3: 7.95%
Median: 4.80%
Q1: 2.20%
Min: -0.29%

A Net Profit Margin of 16.15% places STX in the upper quartile for the Technology Hardware, Storage & Peripherals industry, signifying strong profitability and more effective cost management than most of its peers.

CDNS vs. STX: A comparison of their Net Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

STX

20.88%

Technology Hardware, Storage & Peripherals Industry

Max: 20.70%
Q3: 10.74%
Median: 6.27%
Q1: 4.07%
Min: 1.97%

STX’s Operating Profit Margin of 20.88% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

CDNS vs. STX: A comparison of their Operating Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

Symbol	CDNS	STX
Return on Equity (TTM)	21.28%	398.07%
Return on Assets (TTM)	11.04%	18.64%
Net Profit Margin (TTM)	19.88%	16.15%
Operating Profit Margin (TTM)	30.24%	20.88%
Gross Profit Margin (TTM)	85.57%	35.32%

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.

STX

1.38

Technology Hardware, Storage & Peripherals Industry

Max: 3.37
Q3: 2.04
Median: 1.41
Q1: 0.98
Min: 0.11

STX’s Current Ratio of 1.38 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

CDNS vs. STX: A comparison of their Current Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

STX

51.80

Technology Hardware, Storage & Peripherals Industry

Max: 1.54
Q3: 0.85
Median: 0.32
Q1: 0.11
Min: 0.00

With a Debt-to-Equity Ratio of 51.80, STX operates with exceptionally high leverage compared to the Technology Hardware, Storage & Peripherals industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

CDNS vs. STX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

STX

6.11

Technology Hardware, Storage & Peripherals Industry

Max: 143.63
Q3: 76.01
Median: 19.47
Q1: 5.91
Min: -23.93

STX’s Interest Coverage Ratio of 6.11 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.

CDNS vs. STX: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

Symbol	CDNS	STX
Current Ratio (MRQ)	2.82	1.38
Quick Ratio (MRQ)	2.33	0.84
Debt-to-Equity Ratio (MRQ)	0.50	51.80
Interest Coverage Ratio (TTM)	39.06	6.11

Growth

Revenue Growth

CDNS vs. STX: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CDNS vs. STX: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

STX

1.10%

Technology Hardware, Storage & Peripherals Industry

Max: 4.33%
Q3: 3.29%
Median: 1.76%
Q1: 0.00%
Min: 0.00%

STX’s Dividend Yield of 1.10% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.

CDNS vs. STX: A comparison of their Dividend Yield (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

STX

40.84%

Technology Hardware, Storage & Peripherals Industry

Max: 142.87%
Q3: 77.17%
Median: 40.90%
Q1: 3.87%
Min: 0.00%

STX’s Dividend Payout Ratio of 40.84% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CDNS vs. STX: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

Symbol	CDNS	STX
Dividend Yield (TTM)	0.00%	1.10%
Dividend Payout Ratio (TTM)	0.00%	40.84%

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.

STX

37.24

Technology Hardware, Storage & Peripherals Industry

Max: 43.10
Q3: 28.67
Median: 19.23
Q1: 15.53
Min: 9.46

A P/E Ratio of 37.24 places STX in the upper quartile for the Technology Hardware, Storage & Peripherals industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CDNS vs. STX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

STX

6.01

Technology Hardware, Storage & Peripherals Industry

Max: 5.63
Q3: 3.18
Median: 1.10
Q1: 0.49
Min: 0.04

With a P/S Ratio of 6.01, STX trades at a valuation that eclipses even the highest in the Technology Hardware, Storage & Peripherals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CDNS vs. STX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

STX

136.18

Technology Hardware, Storage & Peripherals Industry

Max: 13.94
Q3: 6.87
Median: 1.88
Q1: 0.94
Min: 0.32

At 136.18, STX’s P/B Ratio is at an extreme premium to the Technology Hardware, Storage & Peripherals industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

CDNS vs. STX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

Symbol	CDNS	STX
Price-to-Earnings Ratio (TTM)	94.22	37.24
Price-to-Sales Ratio (TTM)	18.73	6.01
Price-to-Book Ratio (MRQ)	16.81	136.18
Price-to-Free Cash Flow Ratio (TTM)	60.15	66.87