CDNS vs PTC Stock Comparison: AI Score, Valuation, Performance and Upside
Cadence is a design-software provider focused specifically on semiconductor and chip design, directly levered to the AI silicon design cycle, while PTC provides design and lifecycle management software for physical industrial products more broadly, only partially tied to the same AI infrastructure theme. The comparison contrasts a concentrated AI-adjacent software bet with a broader industrial software platform.
Use this CDNS vs PTC comparison to weigh concentrated exposure to semiconductor design software against broader industrial product-lifecycle software: Cadence offers more direct leverage to AI chip design complexity, while PTC offers diversified exposure to manufacturing digitization trends across many industries.
CDNS holds the edge across 4 of 5 key metrics in this comparison. CDNS has delivered stronger 1-year price return (+0.09% vs -4.76%), though PTC has the better forward P/E setup (17.68x vs 35.67x for CDNS). CDNS leads on both revenue growth (24.20%) and operating margin (28.57%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for CDNS (+18.43%) than for PTC (+10.31%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want concentrated exposure to semiconductor and AI chip design software demand
- Value a duopoly-like competitive position alongside Synopsys
- Prefer high-margin, recurring software revenue tied to a specific secular trend
- Are comfortable with export control and semiconductor cycle risk
- Prefer diversified exposure across industrial and manufacturing software
- Believe digitization of product design and lifecycle management has a long runway
- Want exposure to industrial IoT and AI-assisted design tools
- Seek a software business less tied specifically to semiconductor cycles
| Metric | CDNS | PTC |
|---|---|---|
| AI scorei | 60.8 | 45.7 |
| AI ranki | #127 | #815 |
| Latest closei | $324.38 | $193.15 |
| 1M returni | +18.40% | +45.50% |
| 3M returni | -11.04% | +51.66% |
| 6M returni | +5.68% | +39.69% |
| 1Y returni | +0.09% | -4.76% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | CDNS | PTC |
|---|---|---|
| 1Y ago | $10K (+0.0%) started 2025-10-16 | $9.56K (-4.4%) started 2025-10-16 |
| 5Y ago | $20.59K (+105.9%) started 2021-10-18 | $15.46K (+54.6%) started 2021-10-18 |
| 10Y ago | $125K (+1150.0%) started 2016-10-17 | $42.48K (+324.8%) started 2016-10-17 |
Hypothetical — past performance does not guarantee future results.
| Metric | CDNS | PTC |
|---|---|---|
| Market capi | $93.74B | $17.05B |
| Trailing P/Ei | 67.54 | 15.24 |
| Forward P/Ei | 35.67 | 17.68 |
| Price/Salesi | 16.63 | 8.71 |
| EV/Revenuei | 16.25 | 6.20 |
| Analyst targeti | $403.12 | $173.35 |
| Target upsidei | +18.43% | +10.31% |
| Metric | CDNS | PTC |
|---|---|---|
| Revenue growthi | 24.20% | -6.80% |
| Earnings growthi | 125.40% | -12.00% |
| EPS growthi | +125.40% | -12.00% |
| FCF margini | +27.57% | +34.92% |
| Operating margini | 28.57% | 28.23% |
| Profit margini | 23.61% | 41.43% |
| ROIC proxyi | 23.23% | 35.05% |
| Return on equityi | 23.23% | 35.05% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 1.14 | 0.99 |
| Debt/equityi | 38.66 | 46.34 |
| Current ratioi | 1.74 | 1.02 |
| Quick ratioi | 1.43 | 0.89 |
Over the past year, CDNS and PTC have moved weakly in the same direction (correlation of 0.27), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | CDNS | PTC |
|---|---|---|---|
| 1Y | Growthi | +0.04% | -4.38% |
| CAGRi | +0.04% | -4.38% | |
| Volatilityi | 40.34% | 49.22% | |
| Sharpe ratioi | 0.09 | 0.04 | |
| Sortino ratioi | 0.13 | 0.08 | |
| Max drawdowni | 34.21% | 45.44% | |
| Current drawdowni | 22.10% | 6.18% | |
| Avg drawdowni | 13.19% | 25.41% | |
| Ulcer Indexi | 15.41% | 27.69% | |
| Max daily dropi | 9.47% | 12.36% | |
| Max wkly dropi | 16.14% | 17.02% | |
| 5Y | Growthi | +105.90% | +54.57% |
| CAGRi | +15.56% | +9.11% | |
| Volatilityi | 37.20% | 34.97% | |
| Sharpe ratioi | 0.45 | 0.29 | |
| Sortino ratioi | 0.67 | 0.47 | |
| Max drawdowni | 34.21% | 48.12% | |
| Current drawdowni | 22.10% | 10.80% | |
| Avg drawdowni | 10.94% | 12.44% | |
| Ulcer Indexi | 13.71% | 16.80% | |
| Max daily dropi | 10.67% | 12.36% | |
| Max wkly dropi | 17.15% | 17.02% | |
| 10Y | Growthi | +1150.02% | +324.79% |
| CAGRi | +28.74% | +15.57% | |
| Volatilityi | 34.63% | 35.25% | |
| Sharpe ratioi | 0.77 | 0.46 | |
| Sortino ratioi | 1.15 | 0.68 | |
| Max drawdowni | 34.21% | 54.37% | |
| Current drawdowni | 22.10% | 10.80% | |
| Avg drawdowni | 8.26% | 14.99% | |
| Ulcer Indexi | 11.22% | 19.24% | |
| Max daily dropi | 12.60% | 20.41% | |
| Max wkly dropi | 18.83% | 26.00% |
| Category | CDNS | PTC |
|---|---|---|
| Company | Cadence Design Systems, Inc. | PTC Inc. |
| Sector | Technology | Technology |
| Industry | Software - Application | Software - Application |
| Core business | Cadence provides electronic design automation software, IP, and hardware-based verification systems used by semiconductor and systems companies to design chips, including the advanced silicon powering AI infrastructure. | PTC provides computer-aided design (CAD) and product lifecycle management (PLM) software, along with industrial IoT and augmented reality tools, used by manufacturers to design and manage physical products. |
| Investor focus | Investors watch Cadence's recurring software revenue growth, demand for advanced-node and AI-chip design tools, and competitive dynamics against Synopsys. | Investors watch PTC's annual recurring revenue (ARR) growth, adoption of its CAD (Creo) and PLM (Windchill) platforms, and progress expanding IoT and AI-enabled product design tools. |
- Essential, high-switching-cost software used across the semiconductor design industry
- Direct beneficiary of rising design complexity driven by AI chip development
- High-margin, largely recurring subscription-based revenue model
- Strong, sticky recurring revenue base from CAD and PLM software subscriptions
- Broad industrial customer base across manufacturing, aerospace, and other sectors
- Growing platform extension into industrial IoT and AI-assisted product design
- Revenue concentration in a duopoly-like EDA market alongside Synopsys
- Exposure to semiconductor industry R&D spending cycles and export control policy
- Premium valuation multiple typical of high-quality recurring-revenue software names
- Revenue growth tied to industrial capital spending and manufacturing sector health
- Competitive pressure from Siemens, Dassault Systèmes, and Autodesk in adjacent CAD/PLM markets
- Premium valuation multiple typical of high-quality recurring-revenue industrial software names
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