Adobe Inc. (ADBE) vs Cadence Design Systems, Inc. (CDNS)

Adobe Inc. and Cadence Design Systems, Inc. are both Software Application companies. Adobe Inc. and Cadence Design Systems, Inc. are of similar size ($92.6B and $88.7B). Adobe Inc. trades at the lower P/E: 13.1× against 64.5×. Cadence Design Systems, Inc. grew revenue faster over the last twelve months: 14.7% against 12.0%. Adobe Inc. has the higher net margin (28.1% vs 23.6%) and the higher return on invested capital (46.4% vs 14.0%). Across the 22 metrics below, Adobe Inc. leads on 16 and Cadence Design Systems, Inc. on 6.

Valuation

Metric ADBE CDNS Software Application median
P/E 13.13 64.45 24.79
P/S 3.58 15.31 2.67
P/B 7.91 13.03 3.01
Price to free cash flow 8.78 53.45 16.59
EV/EBITDA 9.27 43.38 14.40
EV/Sales 3.61 15.56 2.62
Earnings yield 7.62% 1.55% 0.00%
Free cash flow yield 11.39% 1.87% 1.91%

Profitability

Metric ADBE CDNS Software Application median
Gross margin 89.25% 85.87% 67.03%
Operating margin 35.70% 30.33% 0.00%
Net margin 28.05% 23.61% 0.00%
Free cash flow margin 40.79% 28.63% 4.32%
Return on equity 61.90% 23.23% 0.00%
Return on assets 24.80% 12.77% 0.00%
Return on invested capital 46.40% 14.01% 0.00%

Growth

Metric ADBE CDNS Software Application median
Revenue growth (TTM) 12.03% 14.70% 12.40%
EPS growth (last fiscal year) 35.11% 5.45% —
Revenue growth, 5-year CAGR 13.06% 14.57% 13.72%
Net income growth, 5-year CAGR 6.27% 13.43% 0.00%

Health

Metric ADBE CDNS Software Application median
Debt to equity 0.54 0.36 0.02
Current ratio 0.77 1.74 1.55
Net debt to EBITDA (0.04) (0.30) 0.06

Dividend

Metric ADBE CDNS Software Application median
Dividend yield — 0.43% 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric ADBE CDNS Software Application median
Market cap 92.59b 88.73b 396.11m

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