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CDNS vs. U: Cadence Design Systems vs. Unity Software Stock Comparison

How do Cadence Design Systems (CDNS) and Unity Software (U) 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 Unity Software (U) 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 Unity Software (U) listed on September 18, 2020 and has a much shorter record to draw on.

Company profile comparison for Cadence Design Systems (CDNS) and Unity Software (U)
Profile ItemCDNSU
NameCadence Design Systems, Inc.Unity Software Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustryApplication SoftwareApplication Software
Market Capitalization87.78 billion USD22.85 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJune 10, 1987September 18, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CDNS
U
GSPC
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Cadence Design Systems (CDNS) vs. Unity Software (U), 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 Unity Software (U). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cadence Design Systems (CDNS) and Unity Software (U). 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 Unity Software (U)
MetricCDNSU
Total Return (1Y)3.07%30.56%
Total Return (3Y, Annualized)9.32%27.46%
Total Return (5Y, Annualized)12.93%-21.16%

Risk Profile

Drawdown History

CDNS
U
GSPC
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Cadence Design Systems (CDNS) vs. Unity Software (U), 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 Unity Software (U). 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 Unity Software (U)
MetricCDNSU
Volatility (1Y, Annualized)42.21%71.11%
Beta (5Y)1.091.97
Max Drawdown (5Y)-34.21%-93.07%
Avg. Volume (3M)2.41M10.92M

Risk-Adjusted Performance

Risk-Return Positioning

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CDNS and U 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 Unity Software (U)
MetricCDNSU
Sharpe Ratio (1Y)-0.030.37
Sortino Ratio (1Y)-0.040.51

Profitability

ROE (TTM)

Unity Software (U) reports a negative ROE of -9.66%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Cadence Design Systems (CDNS) reports 22.87%, ranking against industry peers normally.

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%

U

Software & Services industry group

-9.66%

Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
U
-9.66%
Min
-50.52%
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Cadence Design Systems (CDNS) vs. Unity Software (U): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Unity Software (U) reports a negative net margin of -15.60%, usually indicating a net loss over the period. Meanwhile Cadence Design Systems (CDNS) reports 22.52%, ranking against industry peers normally.

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%

U

Software & Services industry group

-15.60%

Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
U
-15.60%
Min
-33.17%
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Cadence Design Systems (CDNS) vs. Unity Software (U): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Cadence Design Systems (CDNS) at 28.93% operates in the top operating margin quartile, ahead of Unity Software (U) at 16.95%, 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%

U

Software & Services industry group

16.95%

Max
46.89%
Q3
17.64%
U
16.95%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Cadence Design Systems (CDNS) vs. Unity Software (U): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cadence Design Systems (CDNS) and Unity Software (U)
MetricCDNSU
ROE (TTM)22.87%-9.66%
ROA (TTM)10.52%-0.45%
Net Margin (TTM)22.52%-15.60%
Operating Margin (TTM)28.93%16.95%
Gross Margin (TTM)85.68%78.49%

Growth

Revenue Growth

Cadence Design Systems (CDNS) at 14.12% is around its peer norm for revenue growth, while Unity Software (U) at 2.01% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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

EPS Growth

Only one side can be read here: Cadence Design Systems (CDNS) reports EPS growth of 5.45%, ranked against its industry; Unity Software (U) has no EPS growth figure this period.

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

Growth Metrics

Growth metrics for Cadence Design Systems (CDNS) and Unity Software (U)
MetricCDNSU
Revenue Growth (YoY)14.12%2.01%
Revenue Growth (3Y CAGR)14.14%9.96%
EPS Growth (YoY)5.45%--
EPS Growth (3Y CAGR)9.53%--

Financial Strength

Current Ratio (MRQ)

Both Cadence Design Systems (CDNS) at 1.36 and Unity Software (U) at 2.17 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

U

Software & Services industry group

2.17

Max
5.11
Q3
2.77
U
2.17
Median
1.67
Q1
1.01
Min
0.03
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Cadence Design Systems (CDNS) vs. Unity Software (U): 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 Unity Software (U) at 0.66 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

U

Software & Services industry group

0.66

Max
2.52
Q3
1.13
U
0.66
Median
0.40
Q1
0.07
Min
0.00
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Cadence Design Systems (CDNS) vs. Unity Software (U): 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 Unity Software (U)
MetricCDNSU
Current Ratio (MRQ)1.362.17
Debt / Equity (MRQ)0.410.66
Net Debt / EBITDA0.57-0.86

Dividends

Dividend Yield (TTM)

Neither Cadence Design Systems (CDNS) nor Unity Software (U) 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%

U

Software & Services industry group

0.00%

U
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cadence Design Systems (CDNS) vs. Unity Software (U): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Cadence Design Systems (CDNS) nor Unity Software (U) 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%

U

Software & Services industry group

0.00%

U
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cadence Design Systems (CDNS) vs. Unity Software (U): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cadence Design Systems (CDNS) and Unity Software (U)
MetricCDNSU
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Cadence Design Systems (CDNS) trades at 63.60 times trailing earnings, ranked against its peers, while Unity Software (U) has no P/E ratio this period.

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

U

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
U
--
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Cadence Design Systems (CDNS) vs. Unity Software (U): U does not report P/E ratio, so it has no value marker; CDNS is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Both Cadence Design Systems (CDNS) at 14.31 and Unity Software (U) at 10.48 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

U

Software & Services industry group

10.48

Max
17.91
U
10.48
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Cadence Design Systems (CDNS) vs. Unity Software (U): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Unity Software (U) at 7.03 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

U

Software & Services industry group

7.03

Max
16.63
Q3
8.50
U
7.03
Median
4.30
Q1
1.92
Min
-3.90
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Cadence Design Systems (CDNS) vs. Unity Software (U): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cadence Design Systems (CDNS) and Unity Software (U)
MetricCDNSU
P/E Ratio (TTM)63.60--
P/S Ratio (TTM)14.3110.48
P/B Ratio (MRQ)12.777.03
Free Cash Flow Yield (TTM)1.99%2.76%