Cadence Design Systems, Inc. (CDNS) vs Datadog, Inc. (DDOG)

Cadence Design Systems, Inc. and Datadog, Inc. are both Software Application companies. Cadence Design Systems, Inc. is the larger, with a market value of $85.5B against $62.7B — 1.4× the size. Cadence Design Systems, Inc. trades at the lower P/E: 63.3× against 242×. Datadog, Inc. grew revenue faster over the last twelve months: 33.2% against 17.6%. Cadence Design Systems, Inc. has the higher net margin (22.5% vs 6.12%) and the higher return on invested capital (13.8% vs 12.9%). Across the 22 metrics below, Cadence Design Systems, Inc. leads on 16 and Datadog, Inc. on 6.

Valuation

Metric CDNS DDOG Software Application median
P/E 63.26 242.21 26.44
P/S 14.29 15.02 2.90
P/B 12.74 13.63 2.60
Price to free cash flow 49.87 57.93 17.04
EV/EBITDA 41.13 284.00 15.48
EV/Sales 14.48 14.03 3.00
Earnings yield 1.58% 0.41% 0.20%
Free cash flow yield 2.01% 1.73% 1.96%

Profitability

Metric CDNS DDOG Software Application median
Gross margin 85.68% 79.58% 67.34%
Operating margin 28.92% 2.26% 0.00%
Net margin 22.51% 6.12% 0.00%
Free cash flow margin 28.64% 25.93% 5.77%
Return on equity 22.87% 6.43% 0.00%
Return on assets 12.65% 3.77% 0.00%
Return on invested capital 13.76% 12.91% 0.00%

Growth

Metric CDNS DDOG Software Application median
Revenue growth (TTM) 17.64% 33.21% 12.12%
EPS growth (last fiscal year) 5.45% (40.38%) 32.44%
Revenue growth, 5-year CAGR 14.57% 41.53% 14.34%
Net income growth, 5-year CAGR 13.43% 0.00% 0.00%

Health

Metric CDNS DDOG Software Application median
Debt to equity 0.38 0.21 0.04
Current ratio 1.36 3.51 1.53
Net debt to EBITDA (0.30) (88.97) 0.09

Dividend

Metric CDNS DDOG Software Application median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric CDNS DDOG Software Application median
Market cap 85.45b 62.69b 383.88m

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