Autodesk, Inc. (ADSK) vs Cadence Design Systems, Inc. (CDNS)

Autodesk, Inc. and Cadence Design Systems, Inc. are both Software Application companies. Cadence Design Systems, Inc. is the larger, with a market value of $88.7B against $44.1B — 2.0× the size. Autodesk, Inc. trades at the lower P/E: 26.9× against 64.5×. Autodesk, Inc. grew revenue faster over the last twelve months: 17.9% against 14.7%. Cadence Design Systems, Inc. has the higher net margin (23.6% vs 21.1%) and the lower return on invested capital (14.0% vs 105.2%). Across the 22 metrics below, Autodesk, Inc. leads on 14 and Cadence Design Systems, Inc. on 8.

Valuation

Metric ADSK CDNS Software Application median
P/E 26.95 64.45 24.79
P/S 5.64 15.31 2.67
P/B 13.00 13.03 3.01
Price to free cash flow 15.68 53.45 16.59
EV/EBITDA 14.39 43.38 14.40
EV/Sales 5.37 15.56 2.62
Earnings yield 3.71% 1.55% 0.00%
Free cash flow yield 6.38% 1.87% 1.91%

Profitability

Metric ADSK CDNS Software Application median
Gross margin 91.25% 85.87% 67.03%
Operating margin 26.20% 30.33% 0.00%
Net margin 21.08% 23.61% 0.00%
Free cash flow margin 35.99% 28.63% 4.32%
Return on equity 53.85% 23.23% 0.00%
Return on assets 13.78% 12.77% 0.00%
Return on invested capital 105.16% 14.01% 0.00%

Growth

Metric ADSK CDNS Software Application median
Revenue growth (TTM) 17.94% 14.70% 12.40%
EPS growth (last fiscal year) 2.15% 5.45% —
Revenue growth, 5-year CAGR 13.71% 14.57% 13.72%
Net income growth, 5-year CAGR (1.43%) 13.43% 0.00%

Health

Metric ADSK CDNS Software Application median
Debt to equity 0.59 0.36 0.02
Current ratio 0.86 1.74 1.55
Net debt to EBITDA (0.05) (0.30) 0.06

Dividend

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

Size

Metric ADSK CDNS Software Application median
Market cap 44.10b 88.73b 396.11m

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