Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Cadence Design Systems, Inc. or Oracle Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Cadence Design Systems, Inc. and Oracle Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Cadence Design Systems, Inc. and Oracle Corporation

Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property (IP) products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including Innovus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI express, universal accelerator and compute express links, and multiple memory interfaces; and Tensilica, a digital signal processor. In addition, the company’s design IP portfolio includes high-speed serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables critical end-to-end system-level design and verification across chips, packages, PCBs, and complete electronic systems; Allegro X and OrCAD X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AWR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for advanced 3D-IC and multi-chiplet designs; the optimality intelligent system explorer, Reality digital twin, and Millennium enterprise multiphysics platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company was incorporated in 1987 and is headquartered in San Jose, California.

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning ERP, Oracle Fusion cloud enterprise performance management EPM, Oracle Fusion cloud supply chain and manufacturing management SCM, Oracle Fusion cloud human capital management HCM, and NetSuite applications suite, Oracle Health applications, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle cloud license and on-premise license; and Oracle license support services. In addition, it provides cloud and license business’ infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company’s cloud and license business’ infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, as well as AI, Internet-of-Things, machine learning, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware support services, and consulting and advanced customer services. It markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation has a strategic alliance with Metron, Inc. The company was founded in 1977 and is headquartered in Austin, Texas.

Latest Software and Cadence Design Systems, Inc., Oracle Corporation Stock News

As of February 24, 2026, Cadence Design Systems, Inc. had a $80.2 billion market capitalization, compared to the Software median of $867.6 million. Cadence Design Systems, Inc.’s stock is down 3.4% in 2026, down 1% in the previous five trading days and up 12.5% in the past year.

Currently, Cadence Design Systems, Inc.’s price-earnings ratio is 71.6. Cadence Design Systems, Inc.’s trailing 12-month revenue is $5.3 billion with a 20.9% net profit margin. Year-over-year quarterly sales growth most recently was 6.2%. Analysts expect adjusted earnings to reach $7.860 per share for the current fiscal year. Cadence Design Systems, Inc. does not currently pay a dividend.

As of February 24, 2026, Oracle Corporation had a $420.0 billion market cap, putting it in the 100th percentile of all stocks. Oracle Corporation’s stock is down 24.1% in 2026, down 5.3% in the previous five trading days and down 12.91% in the past year.

Currently, Oracle Corporation’s price-earnings ratio is 27.4. Oracle Corporation’s trailing 12-month revenue is $61.0 billion with a 25.3% net profit margin. Year-over-year quarterly sales growth most recently was 14.2%. Analysts expect adjusted earnings to reach $7.345 per share for the current fiscal year. Oracle Corporation currently has a 1.4% dividend yield.

How We Compare Cadence Design Systems, Inc. and Oracle Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Cadence Design Systems, Inc. and Oracle Corporation’s stock grades to see how they measure up against one another.

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Cadence Design Systems, Inc. and Oracle Corporation Stock Value Grades

Company	Ticker	Value
Cadence Design Systems, Inc.	CDNS	F
Oracle Corporation	ORCL	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Cadence Design Systems, Inc. has a Value Score of 6, which is Ultra Expensive. Oracle Corporation has a Value Score of 10, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Cadence Design Systems, Inc. or Oracle Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Cadence Design Systems, Inc. or Oracle Corporation is the better investment when it comes to value.

Cadence Design Systems, Inc. and Oracle Corporation Growth Grades

Company	Ticker	Growth
Cadence Design Systems, Inc.	CDNS	A
Oracle Corporation	ORCL	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Cadence Design Systems, Inc. has a Growth Score of 90, which is Very Strong. Oracle Corporation has a Growth Score of 100, which is Very Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Cadence Design Systems, Inc. and Oracle Corporation have a grade of A. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Cadence Design Systems, Inc. and Oracle Corporation’s Momentum Grades

Company	Ticker	Momentum
Cadence Design Systems, Inc.	CDNS	C
Oracle Corporation	ORCL	D

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Cadence Design Systems, Inc. has a Momentum Score of 47, which is Average. Oracle Corporation has a Momentum Score of 23, which is Weak.

The Momentum Stock Winner: No Clear Winner

Neither Cadence Design Systems, Inc. or Oracle Corporation has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Cadence Design Systems, Inc. or Oracle Corporation is the better investment when it comes to momentum.

Other Cadence Design Systems, Inc. and Oracle Corporation Grades

In addition to Momentum, Value and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Cadence Design Systems, Inc. and Oracle Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Cadence Design Systems, Inc. or Oracle Corporation Stock?

Overall, Cadence Design Systems, Inc. stock has a Value Score of 6, Growth Score of 90 and Momentum Score of 47.

Oracle Corporation stock has a Value Score of 10, Growth Score of 100 and Momentum Score of 23.

Comparing Cadence Design Systems, Inc. and Oracle Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.