CDNS vs. VRSN: Cadence Design Systems vs. VeriSign Stock Comparison
How do Cadence Design Systems (CDNS) and VeriSign (VRSN) 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 VeriSign (VRSN) both fall under the Software & Services industry group, but CDNS is classified in Software while VRSN is classified in IT Services.
| Profile Item | CDNS | VRSN |
|---|---|---|
| Name | Cadence Design Systems, Inc. | VeriSign, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | IT Services |
| GICS Sub-Industry | Application Software | Internet Services & Infrastructure |
| Market Capitalization | 87.78 billion USD | 27.69 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | January 30, 1998 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| Total Return (1Y) | 3.07% | 28.37% |
| Total Return (3Y, Annualized) | 9.32% | 15.25% |
| Total Return (5Y, Annualized) | 12.93% | 5.98% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 28.25% |
| Beta (5Y) | 1.09 | 0.67 |
| Max Drawdown (5Y) | -34.21% | -38.85% |
| Avg. Volume (3M) | 2.41M | 869.64K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | 0.85 |
| Sortino Ratio (1Y) | -0.04 | 1.24 |
Profitability
ROE (TTM)
Capital efficiency shows on one side only: Cadence Design Systems (CDNS) earns 22.87% on shareholders’ equity, ranked against its industry; VeriSign (VRSN) has no ROE this period.
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%
VRSN
Software & Services industry group
--
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
- VRSN
- --
Net Margin (TTM)
VeriSign (VRSN) at 49.07% keeps the most of each sales dollar — above its industry’s net margin range — and Cadence Design Systems (CDNS) at 22.52% also retains a top-quartile 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%
VRSN
Software & Services industry group
49.07%
- VRSN
- 49.07%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
VeriSign (VRSN) at 68.62% shows unusually strong operating efficiency — above its industry’s operating margin range — and Cadence Design Systems (CDNS) at 28.93% also operates in the top quartile.
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%
VRSN
Software & Services industry group
68.62%
- VRSN
- 68.62%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| ROE (TTM) | 22.87% | -- |
| ROA (TTM) | 10.52% | 54.90% |
| Net Margin (TTM) | 22.52% | 49.07% |
| Operating Margin (TTM) | 28.93% | 68.62% |
| Gross Margin (TTM) | 85.68% | 88.57% |
Growth
Revenue Growth
Cadence Design Systems (CDNS) at 14.12% is around its peer norm for revenue growth, while VeriSign (VRSN) at 6.37% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Both Cadence Design Systems (CDNS) at 5.45% and VeriSign (VRSN) at 10.13% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 6.37% |
| Revenue Growth (3Y CAGR) | 14.14% | 5.15% |
| EPS Growth (YoY) | 5.45% | 10.13% |
| EPS Growth (3Y CAGR) | 9.53% | 12.18% |
Financial Strength
Current Ratio (MRQ)
Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while VeriSign (VRSN) at 0.42 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for VRSN.
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
VRSN
Software & Services industry group
0.42
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- VRSN
- 0.42
- Min
- 0.03
Debt / Equity (MRQ)
Only one side’s leverage can be read here: Cadence Design Systems (CDNS) carries debt-to-equity ratio of 0.41 against its industry range, while VeriSign (VRSN) reports no figure this period.
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
VRSN
Software & Services industry group
--
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
- VRSN
- --
Financial Strength Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 0.42 |
| Debt / Equity (MRQ) | 0.41 | -- |
| Net Debt / EBITDA | 0.57 | 1.09 |
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 VeriSign (VRSN) 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%
VRSN
Software & Services industry group
1.03%
- VRSN
- 1.03%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
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 VeriSign (VRSN) reports a payout of 34.45%, 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%
VRSN
Software & Services industry group
34.45%
- VRSN
- 34.45%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.03% |
| Dividend Payout Ratio (TTM) | 0.00% | 34.45% |
Valuation
P/E Ratio (TTM)
VeriSign (VRSN) at 33.23 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
VRSN
Software & Services industry group
33.23
- Max
- 112.94
- Q3
- 60.32
- VRSN
- 33.23
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both Cadence Design Systems (CDNS) at 14.31 and VeriSign (VRSN) at 15.99 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
VRSN
Software & Services industry group
15.99
- Max
- 17.91
- VRSN
- 15.99
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
VeriSign (VRSN) reports a negative P/B ratio of -12.13, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Cadence Design Systems (CDNS) reports 12.77, ranking against industry peers normally.
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
VRSN
Software & Services industry group
-12.13
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
- VRSN
- -12.13
Valuation Metrics
| Metric | CDNS | VRSN |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 33.23 |
| P/S Ratio (TTM) | 14.31 | 15.99 |
| P/B Ratio (MRQ) | 12.77 | -12.13 |
| Free Cash Flow Yield (TTM) | 1.99% | 2.89% |