CDNS vs. ZS: Cadence Design Systems vs. Zscaler Stock Comparison
How do Cadence Design Systems (CDNS) and Zscaler (ZS) 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 Zscaler (ZS) both belong to the Software industry, though CDNS is classified under Application Software while ZS falls under Systems Software.
| Profile Item | CDNS | ZS |
|---|---|---|
| Name | Cadence Design Systems, Inc. | Zscaler Inc. |
| 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 | Systems Software |
| Market Capitalization | 87.78 billion USD | 32.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 10, 1987 | March 16, 2018 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CDNS | ZS |
|---|---|---|
| Total Return (1Y) | 3.07% | -37.61% |
| Total Return (3Y, Annualized) | 9.32% | 5.36% |
| Total Return (5Y, Annualized) | 12.93% | -10.75% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CDNS | ZS |
|---|---|---|
| Volatility (1Y, Annualized) | 42.21% | 68.66% |
| Beta (5Y) | 1.09 | 0.88 |
| Max Drawdown (5Y) | -34.21% | -76.41% |
| Avg. Volume (3M) | 2.41M | 2.92M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CDNS | ZS |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | -0.61 |
| Sortino Ratio (1Y) | -0.04 | -0.79 |
Profitability
ROE (TTM)
Zscaler (ZS) reports a negative ROE of -2.87%; 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%
ZS
Software & Services industry group
-2.87%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- ZS
- -2.87%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zscaler (ZS) reports a negative net margin of -1.89%, 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%
ZS
Software & Services industry group
-1.89%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- ZS
- -1.89%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Zscaler (ZS) reports a negative operating margin of -1.01%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Cadence Design Systems (CDNS) reports 28.93%, ranking against industry peers normally.
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%
ZS
Software & Services industry group
-1.01%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- ZS
- -1.01%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CDNS | ZS |
|---|---|---|
| ROE (TTM) | 22.87% | -2.87% |
| ROA (TTM) | 10.52% | -1.03% |
| Net Margin (TTM) | 22.52% | -1.89% |
| Operating Margin (TTM) | 28.93% | -1.01% |
| Gross Margin (TTM) | 85.68% | 76.87% |
Growth
Revenue Growth
Both Cadence Design Systems (CDNS) at 14.12% and Zscaler (ZS) at 25.42% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Only one side can be read here: Cadence Design Systems (CDNS) reports EPS growth of 5.45%, ranked against its industry; Zscaler (ZS) has no EPS growth figure this period.
Growth Metrics
| Metric | CDNS | ZS |
|---|---|---|
| Revenue Growth (YoY) | 14.12% | 25.42% |
| Revenue Growth (3Y CAGR) | 14.14% | 27.51% |
| 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 Zscaler (ZS) at 1.70 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
ZS
Software & Services industry group
1.70
- Max
- 5.11
- Q3
- 2.77
- ZS
- 1.70
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Cadence Design Systems (CDNS) at 0.41 and Zscaler (ZS) at 0.72 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
ZS
Software & Services industry group
0.72
- Max
- 2.52
- Q3
- 1.13
- ZS
- 0.72
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CDNS | ZS |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 1.70 |
| Debt / Equity (MRQ) | 0.41 | 0.72 |
| Net Debt / EBITDA | 0.57 | -36.63 |
Dividends
Dividend Yield (TTM)
Neither Cadence Design Systems (CDNS) nor Zscaler (ZS) 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%
ZS
Software & Services industry group
0.00%
- ZS
- 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 Zscaler (ZS) 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%
ZS
Software & Services industry group
0.00%
- ZS
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CDNS | ZS |
|---|---|---|
| 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 Zscaler (ZS) 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
ZS
Software & Services industry group
--
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
- ZS
- --
P/S Ratio (TTM)
Both Cadence Design Systems (CDNS) at 14.31 and Zscaler (ZS) at 9.61 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
ZS
Software & Services industry group
9.61
- Max
- 17.91
- ZS
- 9.61
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both Cadence Design Systems (CDNS) at 12.77 and Zscaler (ZS) at 12.40 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
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
ZS
Software & Services industry group
12.40
- Max
- 16.63
- ZS
- 12.40
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CDNS | ZS |
|---|---|---|
| P/E Ratio (TTM) | 63.60 | -- |
| P/S Ratio (TTM) | 14.31 | 9.61 |
| P/B Ratio (MRQ) | 12.77 | 12.40 |
| Free Cash Flow Yield (TTM) | 1.99% | 3.34% |