Cadence Design Systems, Inc. (CDNS) vs Workday, Inc. (WDAY)

Cadence Design Systems, Inc. and Workday, Inc. are both Software Application companies. Cadence Design Systems, Inc. is the larger, with a market value of $88.7B against $46.1B — 1.9× the size. Workday, Inc. trades at the lower P/E: 38.2× against 64.5×. Cadence Design Systems, Inc. grew revenue faster over the last twelve months: 14.7% against 13.4%. Cadence Design Systems, Inc. has the higher net margin (23.6% vs 12.3%) and the higher return on invested capital (14.0% vs 11.2%). Across the 22 metrics below, Cadence Design Systems, Inc. leads on 11 and Workday, Inc. on 11.

Valuation

Metric CDNS WDAY Software Application median
P/E 64.45 38.16 24.79
P/S 15.31 4.57 2.67
P/B 13.03 7.18 3.01
Price to free cash flow 53.45 16.33 16.59
EV/EBITDA 43.38 26.07 14.40
EV/Sales 15.56 4.53 2.62
Earnings yield 1.55% 2.62% 0.00%
Free cash flow yield 1.87% 6.12% 1.91%

Profitability

Metric CDNS WDAY Software Application median
Gross margin 85.87% 75.80% 67.03%
Operating margin 30.33% 10.68% 0.00%
Net margin 23.61% 12.32% 0.00%
Free cash flow margin 28.63% 28.01% 4.32%
Return on equity 23.23% 16.01% 0.00%
Return on assets 12.77% 7.40% 0.00%
Return on invested capital 14.01% 11.22% 0.00%

Growth

Metric CDNS WDAY Software Application median
Revenue growth (TTM) 14.70% 13.35% 12.40%
EPS growth (last fiscal year) 5.45% 32.82% —
Revenue growth, 5-year CAGR 14.57% 17.21% 13.72%
Net income growth, 5-year CAGR 13.43% 0.00% 0.00%

Health

Metric CDNS WDAY Software Application median
Debt to equity 0.36 0.46 0.02
Current ratio 1.74 0.91 1.55
Net debt to EBITDA (0.30) (1.81) 0.06

Dividend

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

Size

Metric CDNS WDAY Software Application median
Market cap 88.73b 46.09b 396.11m

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