CDNS vs. ZM: Cadence Design Systems vs. Zoom Communications Stock Comparison

Company Profile

Cadence Design Systems (CDNS) and Zoom Communications (ZM) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Cadence Design Systems (CDNS) at 22.87% and Zoom Communications (ZM) at 32.14% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

Zoom Communications (ZM) at 65.19% 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.

Both Cadence Design Systems (CDNS) at 28.93% and Zoom Communications (ZM) at 24.61% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

Profitability Metrics

Growth

Cadence Design Systems (CDNS) at 14.12% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Cadence Design Systems (CDNS) at 5.45% is closer to the peer norm — faster per-share earnings growth for ZM.

Growth Metrics

Financial Strength

Cadence Design Systems (CDNS) at 1.36 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Cadence Design Systems (CDNS) at 0.41 runs a more typical debt-to-equity mix.

Financial Strength Metrics

Dividends

Neither Cadence Design Systems (CDNS) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

Neither Cadence Design Systems (CDNS) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

Dividend Metrics

Valuation

Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Cadence Design Systems (CDNS) at 63.60 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.

Zoom Communications (ZM) at 5.25 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.

Zoom Communications (ZM) at 2.32 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.

Valuation Metrics