Cadence Design Systems, Inc. (CDNS) vs Intuit Inc. (INTU)

Cadence Design Systems, Inc. and Intuit Inc. are both Software Application companies. Intuit Inc. is the larger, with a market value of $94.8B against $85.5B — 1.1× the size. Intuit Inc. trades at the lower P/E: 21.4× against 61.7×. Cadence Design Systems, Inc. grew revenue faster over the last twelve months: 17.6% against 13.9%. Cadence Design Systems, Inc. has the higher net margin (22.5% vs 21.3%) and the lower return on invested capital (13.8% vs 20.2%). Across the 22 metrics below, Intuit Inc. leads on 16 and Cadence Design Systems, Inc. on 6.

Valuation

Metric CDNS INTU Software Application median
P/E 61.70 21.43 25.90
P/S 13.93 4.56 3.04
P/B 12.43 5.15 2.60
Price to free cash flow 48.64 11.35 17.17
EV/EBITDA 40.13 14.46 15.48
EV/Sales 14.13 4.54 2.89
Earnings yield 1.62% 4.67% 0.00%
Free cash flow yield 2.06% 8.81% 1.98%

Profitability

Metric CDNS INTU Software Application median
Gross margin 85.68% 80.17% 66.89%
Operating margin 28.92% 27.43% 0.00%
Net margin 22.51% 21.29% 0.00%
Free cash flow margin 28.64% 40.18% 5.77%
Return on equity 22.87% 23.60% 0.00%
Return on assets 12.65% 12.38% 0.00%
Return on invested capital 13.76% 20.19% 0.00%

Growth

Metric CDNS INTU Software Application median
Revenue growth (TTM) 17.64% 13.90% 12.27%
EPS growth (last fiscal year) 5.45% 20.41% 32.11%
Revenue growth, 5-year CAGR 14.57% 17.36% 14.34%
Net income growth, 5-year CAGR 13.43% 17.23% 0.00%

Health

Metric CDNS INTU Software Application median
Debt to equity 0.38 0.34 0.02
Current ratio 1.36 1.51 1.53
Net debt to EBITDA (0.30) (0.12) 0.09

Dividend

Metric CDNS INTU Software Application median
Dividend yield — 1.41% 1.10%
Payout ratio — 0.30 0.28

Size

Metric CDNS INTU Software Application median
Market cap 85.45b 94.83b 487.58m

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