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 or Inc. 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 and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Cadence Design Systems and Inc.

Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property 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 In novus 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 Ten Silica, a digital signal processor. In addition, the company’s design IP portfolio includes 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 end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR 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 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.

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

As of June 9, 2026, Cadence Design Systems, Inc. had a $107.8 billion market capitalization, compared to the Software median of $946.3 million. Cadence Design Systems, Inc.’s stock is up 25.1% in 2026, down 6.1% in the previous five trading days and up 31.64% in the past year.

Currently, Cadence Design Systems, Inc.’s price-earnings ratio is 91.1. Cadence Design Systems, Inc.’s trailing 12-month revenue is $5.5 billion with a 21.2% net profit margin. Year-over-year quarterly sales growth most recently was 18.7%. There are no analysts providing consensus earnings estimates for the current fiscal year. Cadence Design Systems, Inc. does not currently pay a dividend.

Currently, does not have a price-earnings ratio. ’s trailing 12-month revenue is $0.0 with a % net profit margin. As of June 9, 2026, has not reported significant year-over-year quarterly sales. There are no analysts providing consensus earnings estimates for the current fiscal year. does not currently pay a dividend.

How We Compare Cadence Design Systems and Inc. 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 and Inc.’s stock grades to see how they measure up against one another.

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Cadence Design Systems and Inc. Growth Grades

Company	Ticker	Growth
Cadence Design Systems, Inc.	CDNS	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 89, which is Very Strong.

The Growth Grade Winner: Cadence Design Systems, Inc.

As you can clearly see from the Growth Grade breakdown above, Cadence Design Systems, Inc. has a more attractive growth grade than . For investors who focus solely on how a company is growing relative to other companies in the same industry, Cadence Design Systems, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Cadence Design Systems and Inc.’s Momentum Grades

Company	Ticker	Momentum
Cadence Design Systems, Inc.	CDNS	B

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 76, which is Strong.

The Momentum Grade Winner: Cadence Design Systems, Inc.

As you can clearly see from the Momentum Grade breakdown above, Cadence Design Systems, Inc. is considered to have stronger momentum compared to . For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Cadence Design Systems, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Cadence Design Systems and Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Cadence Design Systems, Inc.	CDNS	C

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

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Cadence Design Systems, Inc. has a Earnings Estimate Score of 73, which is Positive.

The Earnings Estimate Revisions Grade Winner: Cadence Design Systems, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Cadence Design Systems, Inc. has a better Earnings Estimate Revisions Grade than . For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Cadence Design Systems, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Cadence Design Systems and Inc. Grades

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

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 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 and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

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

Overall, Cadence Design Systems, Inc. stock has a Growth Score of 89, Momentum Score of 76 and Estimate Revisions Score of 73.

Comparing Cadence Design Systems and Inc.’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.