Cadence Design Systems, Inc. (CDNS) vs Snowflake Inc. (SNOW)

Cadence Design Systems, Inc. and Snowflake Inc. are both Software Application companies. Snowflake Inc. is the larger, with a market value of $117.9B against $88.7B — 1.3× the size. Snowflake Inc. has negative trailing earnings, so its P/E is not meaningful; Cadence Design Systems, Inc. trades at 64.5×. Snowflake Inc. grew revenue faster over the last twelve months: 32.0% against 14.7%. Cadence Design Systems, Inc. has the higher net margin (23.6% vs −20.1%) and the higher return on invested capital (14.0% vs −37.0%). Across the 20 metrics below, Cadence Design Systems, Inc. leads on 18 and Snowflake Inc. on 2.

Valuation

Metric CDNS SNOW Software Application median
P/E 64.45 n/m 24.79
P/S 15.31 21.59 2.67
P/B 13.03 54.58 3.01
Price to free cash flow 53.45 98.42 16.59
EV/EBITDA 43.38 n/m 14.40
EV/Sales 15.56 21.58 2.62
Earnings yield 1.55% (0.95%) 0.00%
Free cash flow yield 1.87% 1.02% 1.91%

Profitability

Metric CDNS SNOW Software Application median
Gross margin 85.87% 67.03% 67.03%
Operating margin 30.33% (22.76%) 0.00%
Net margin 23.61% (20.07%) 0.00%
Free cash flow margin 28.63% 21.94% 4.32%
Return on equity 23.23% (48.17%) 0.00%
Return on assets 12.77% (12.92%) 0.00%
Return on invested capital 14.01% (37.00%) 0.00%

Growth

Metric CDNS SNOW Software Application median
Revenue growth (TTM) 14.70% 32.04% 12.40%
EPS growth (last fiscal year) 5.45% (2.33%) —
Revenue growth, 5-year CAGR 14.57% 51.23% 13.72%
Net income growth, 5-year CAGR 13.43% 0.00% 0.00%

Health

Metric CDNS SNOW Software Application median
Debt to equity 0.36 1.06 0.02
Current ratio 1.74 0.94 1.55
Net debt to EBITDA (0.30) 1.61 0.06

Dividend

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

Size

Metric CDNS SNOW Software Application median
Market cap 88.73b 117.91b 396.11m

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