CDNS vs. WDAY: Cadence Design Systems vs. Workday Stock Comparison
How do Cadence Design Systems (CDNS) and Workday (WDAY) 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 Workday (WDAY) 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 | WDAY |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Workday Inc Class A Common Stock |
| 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 | 46.49 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | October 12, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | WDAY |
|---|---|---|
| Total Return (1Y) | 3.07% | -14.74% |
| Total Return (3Y, Annualized) | 9.32% | -5.22% |
| Total Return (5Y, Annualized) | 12.93% | -8.14% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | WDAY |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 54.35% |
| Beta (5Y) | 1.09 | 1.01 |
| Max Drawdown (5Y) | -34.21% | -63.38% |
| Avg. Volume (3M) | 2.41M | 3.14M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | WDAY |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | -0.35 |
| Sortino Ratio (1Y) | -0.04 | -0.54 |
Profitability
ROE (TTM)
Cadence Design Systems (CDNS) at 22.87% sits in the top ROE quartile, while Workday (WDAY) at 16.01% 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%
WDAY
Software & Services industry group
16.01%
- Max
- 53.85%
- Q3
- 17.90%
- WDAY
- 16.01%
- Median
- 6.59%
- 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 Workday (WDAY) at 12.32%, 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%
WDAY
Software & Services industry group
12.32%
- Max
- 41.17%
- Q3
- 15.28%
- WDAY
- 12.32%
- 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 Workday (WDAY) at 11.82%, 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%
WDAY
Software & Services industry group
11.82%
- Max
- 46.89%
- Q3
- 17.64%
- WDAY
- 11.82%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | WDAY |
|---|---|---|
| ROE (TTM) | 22.87% | 16.01% |
| ROA (TTM) | 10.52% | 4.51% |
| Net Margin (TTM) | 22.52% | 12.32% |
| Operating Margin (TTM) | 28.93% | 11.82% |
| Gross Margin (TTM) | 85.68% | 75.80% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Workday (WDAY) at 13.10% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Cadence Design Systems (CDNS) at 5.45% and Workday (WDAY) at 32.82% 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 | WDAY |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 13.10% |
| Revenue Growth (3Y CAGR) | 14.14% | 15.40% |
| EPS Growth (YoY) | 5.45% | 32.82% |
| EPS Growth (3Y CAGR) | 9.53% | -- |
Financial Strength
Current Ratio (MRQ)
Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while Workday (WDAY) at 0.91 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WDAY.
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
WDAY
Software & Services industry group
0.91
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- WDAY
- 0.91
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Workday (WDAY) at 0.58 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
WDAY
Software & Services industry group
0.58
- Max
- 2.52
- Q3
- 1.13
- WDAY
- 0.58
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | WDAY |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 0.91 |
| Debt / Equity (MRQ) | 0.41 | 0.58 |
| Net Debt / EBITDA | 0.57 | 0.23 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Workday (WDAY) 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%
WDAY
Software & Services industry group
0.00%
- WDAY
- 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 Workday (WDAY) 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%
WDAY
Software & Services industry group
0.00%
- WDAY
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | WDAY |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Workday (WDAY) at 39.29 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
WDAY
Software & Services industry group
39.29
- Max
- 112.94
- Q3
- 60.32
- WDAY
- 39.29
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Workday (WDAY) at 4.58 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
WDAY
Software & Services industry group
4.58
- Max
- 17.91
- Q3
- 8.78
- WDAY
- 4.58
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Workday (WDAY) at 7.20 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
WDAY
Software & Services industry group
7.20
- Max
- 16.63
- Q3
- 8.50
- WDAY
- 7.20
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | WDAY |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | 39.29 |
| P/S Ratio (TTM) | 14.31 | 4.58 |
| P/B Ratio (MRQ) | 12.77 | 7.20 |
| Free Cash Flow Yield (TTM) | 1.99% | 6.55% |