Cadence Design Systems, Inc. (CDNS) vs Atlassian Corporation PLC (TEAM)

Cadence Design Systems, Inc. and Atlassian Corporation PLC are both Software Application companies. Cadence Design Systems, Inc. is the larger, with a market value of $96.1B against $51.5B — 1.9× the size. Atlassian Corporation PLC has negative trailing earnings, so its P/E is not meaningful; Cadence Design Systems, Inc. trades at 69.6×. Atlassian Corporation PLC grew revenue faster over the last twelve months: 26.0% against 14.7%. Cadence Design Systems, Inc. has the higher net margin (23.6% vs −0.82%) and the higher return on invested capital (14.0% vs 0.80%). Across the 21 metrics below, Cadence Design Systems, Inc. leads on 13 and Atlassian Corporation PLC on 8.

Valuation

Metric CDNS TEAM Software Application median
P/E 69.58 n/m 24.69
P/S 16.52 8.19 2.74
P/B 14.06 50.83 2.83
Price to free cash flow 57.70 40.93 17.55
EV/EBITDA 46.78 354.91 14.66
EV/Sales 16.77 8.16 2.65
Earnings yield 1.44% (0.09%) 0.00%
Free cash flow yield 1.73% 2.44% 1.87%

Profitability

Metric CDNS TEAM Software Application median
Gross margin 85.87% 84.83% 67.03%
Operating margin 30.33% 0.16% 0.00%
Net margin 23.61% (0.82%) 0.00%
Free cash flow margin 28.63% 20.07% 5.01%
Return on equity 23.23% (4.48%) 0.00%
Return on assets 12.77% (0.89%) 0.00%
Return on invested capital 14.01% 0.80% 0.00%

Growth

Metric CDNS TEAM Software Application median
Revenue growth (TTM) 14.70% 26.02% 12.48%
EPS growth (last fiscal year) 5.45% 78.57% 32.26%
Revenue growth, 5-year CAGR 14.57% 25.76% 14.21%
Net income growth, 5-year CAGR 13.43% 0.00% 0.00%

Health

Metric CDNS TEAM Software Application median
Debt to equity 0.36 0.93 0.02
Current ratio 1.74 0.78 1.52
Net debt to EBITDA (0.30) (1.66) 0.06

Dividend

Metric CDNS TEAM Software Application median
Dividend yield — — 0.86%
Payout ratio — — 0.29

Size

Metric CDNS TEAM Software Application median
Market cap 96.07b 51.53b 379.49m

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