Cadence Design Systems, Inc. (CDNS) vs Salesforce, Inc. (CRM)

Cadence Design Systems, Inc. and Salesforce, Inc. are both Software Application companies. Salesforce, Inc. is the larger, with a market value of $187.5B against $96.1B — 2.0× the size. Salesforce, Inc. trades at the lower P/E: 20.8× against 69.6×. Cadence Design Systems, Inc. grew revenue faster over the last twelve months: 14.7% against 11.2%. Cadence Design Systems, Inc. has the higher net margin (23.6% vs 22.0%) and the higher return on invested capital (14.0% vs 8.24%). Across the 22 metrics below, Cadence Design Systems, Inc. leads on 12 and Salesforce, Inc. on 10.

Valuation

Metric CDNS CRM Software Application median
P/E 69.58 20.81 24.69
P/S 16.52 4.28 2.74
P/B 14.06 4.90 2.83
Price to free cash flow 57.70 12.40 17.55
EV/EBITDA 46.78 14.71 14.66
EV/Sales 16.77 5.00 2.65
Earnings yield 1.44% 4.81% 0.00%
Free cash flow yield 1.73% 8.07% 1.87%

Profitability

Metric CDNS CRM Software Application median
Gross margin 85.87% 77.28% 67.03%
Operating margin 30.33% 19.88% 0.00%
Net margin 23.61% 21.99% 0.00%
Free cash flow margin 28.63% 34.49% 5.01%
Return on equity 23.23% 19.38% 0.00%
Return on assets 12.77% 9.33% 0.00%
Return on invested capital 14.01% 8.24% 0.00%

Growth

Metric CDNS CRM Software Application median
Revenue growth (TTM) 14.70% 11.23% 12.48%
EPS growth (last fiscal year) 5.45% 22.64% 32.26%
Revenue growth, 5-year CAGR 14.57% 14.34% 14.21%
Net income growth, 5-year CAGR 13.43% 12.86% 0.00%

Health

Metric CDNS CRM Software Application median
Debt to equity 0.36 1.02 0.02
Current ratio 1.74 0.84 1.52
Net debt to EBITDA (0.30) 0.34 0.06

Dividend

Metric CDNS CRM Software Application median
Dividend yield — 0.76% 0.86%
Payout ratio — 0.16 0.29

Size

Metric CDNS CRM Software Application median
Market cap 96.07b 187.48b 379.49m

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