CDNS vs SNPS Stock Comparison: AI Score, Valuation, Performance and Upside
Cadence and Synopsys operate as the two dominant players in electronic design automation software, both directly levered to rising chip design complexity driven by AI silicon development. The comparison largely comes down to relative execution, product portfolio strategy, and valuation between two structurally similar, high-quality software franchises.
Use this CDNS vs SNPS comparison to evaluate two near-identical beneficiaries of the same secular EDA software trend: since both companies compete in the same duopoly-like market with similar growth drivers, the decision often comes down to relative valuation, recent execution, and each company's specific product and portfolio strategy.
SNPS holds the edge across 4 of 5 key metrics in this comparison. SNPS leads on both 1-year return (+4.30%) and forward P/E quality (25.28x vs 35.67x for CDNS), a relatively favorable combination of momentum and valuation. On fundamentals, SNPS is growing revenue faster (42.40%), while CDNS maintains the higher operating margin (28.57%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for SNPS (+23.13%) than for CDNS (+18.43%).
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 exposure to EDA software with a design and verification tool focus
- Value Cadence's specific product roadmap and recent execution trends
- Prefer whichever of the two names trades at a relatively more attractive valuation
- Are comfortable with concentrated exposure to a two-company market structure
- Want exposure to EDA software with a deep semiconductor IP portfolio
- Value Synopsys's broad relationships across nearly all major chipmakers
- Are interested in how Synopsys's portfolio strategy evolves post software-integrity changes
- Prefer whichever of the two names trades at a relatively more attractive valuation
| Metric | CDNS | SNPS |
|---|---|---|
| AI scorei | 60.7 | 62.5 |
| AI ranki | #127 | #96 |
| Latest closei | $319.51 | $454.63 |
| 1M returni | +14.15% | +20.12% |
| 3M returni | -3.21% | +18.31% |
| 6M returni | +2.73% | +1.12% |
| 1Y returni | -1.42% | +4.30% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | CDNS | SNPS |
|---|---|---|
| 1Y ago | $9.85K (-1.5%) started 2025-10-16 | $10.33K (+3.3%) started 2025-10-16 |
| 5Y ago | $20.28K (+102.8%) started 2021-10-18 | $14.8K (+48.0%) started 2021-10-18 |
| 10Y ago | $123.13K (+1131.3%) started 2016-10-17 | $76.09K (+660.9%) started 2016-10-17 |
Hypothetical — past performance does not guarantee future results.
| Metric | CDNS | SNPS |
|---|---|---|
| Market capi | $93.74B | $84.82B |
| Trailing P/Ei | 67.54 | 77.51 |
| Forward P/Ei | 35.67 | 25.28 |
| Price/Salesi | 16.63 | 12.12 |
| EV/Revenuei | 16.25 | 9.78 |
| Analyst targeti | $403.12 | $544.97 |
| Target upsidei | +18.43% | +23.13% |
| Metric | CDNS | SNPS |
|---|---|---|
| Revenue growthi | 24.20% | 42.40% |
| Earnings growthi | 125.40% | 89.30% |
| EPS growthi | +125.40% | +89.30% |
| FCF margini | +27.57% | +36.38% |
| Operating margini | 28.57% | 14.52% |
| Profit margini | 23.61% | 11.43% |
| ROIC proxyi | 23.23% | 3.66% |
| Return on equityi | 23.23% | 3.66% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 1.14 | 1.21 |
| Debt/equityi | 38.66 | 34.80 |
| Current ratioi | 1.74 | 1.34 |
| Quick ratioi | 1.43 | 1.17 |
Over the past year, CDNS and SNPS have moved strongly in the same direction (correlation of 0.76), 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 | SNPS |
|---|---|---|---|
| 1Y | Growthi | -1.46% | +3.28% |
| CAGRi | -1.46% | +3.28% | |
| Volatilityi | 40.37% | 44.00% | |
| Sharpe ratioi | 0.05 | 0.19 | |
| Sortino ratioi | 0.08 | 0.28 | |
| Max drawdowni | 34.21% | 31.21% | |
| Current drawdowni | 23.27% | 14.95% | |
| Avg drawdowni | 13.19% | 14.20% | |
| Ulcer Indexi | 15.42% | 16.83% | |
| Max daily dropi | 9.47% | 8.61% | |
| Max wkly dropi | 16.14% | 18.06% | |
| 5Y | Growthi | +102.81% | +47.98% |
| CAGRi | +15.21% | +8.16% | |
| Volatilityi | 37.21% | 42.30% | |
| Sharpe ratioi | 0.45 | 0.30 | |
| Sortino ratioi | 0.66 | 0.41 | |
| Max drawdowni | 34.21% | 43.02% | |
| Current drawdowni | 23.27% | 29.55% | |
| Avg drawdowni | 10.94% | 15.84% | |
| Ulcer Indexi | 13.71% | 19.58% | |
| Max daily dropi | 10.67% | 35.84% | |
| Max wkly dropi | 17.15% | 34.51% | |
| 10Y | Growthi | +1131.25% | +660.89% |
| CAGRi | +28.55% | +22.51% | |
| Volatilityi | 34.63% | 36.09% | |
| Sharpe ratioi | 0.77 | 0.63 | |
| Sortino ratioi | 1.14 | 0.87 | |
| Max drawdowni | 34.21% | 43.02% | |
| Current drawdowni | 23.27% | 29.55% | |
| Avg drawdowni | 8.26% | 10.48% | |
| Ulcer Indexi | 11.22% | 14.90% | |
| Max daily dropi | 12.60% | 35.84% | |
| Max wkly dropi | 18.83% | 34.51% |
| Category | CDNS | SNPS |
|---|---|---|
| Company | Cadence Design Systems, Inc. | Synopsys, Inc. |
| Sector | Technology | Technology |
| Industry | Software - Application | Software - Infrastructure |
| 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. | Synopsys provides electronic design automation software, semiconductor IP, and has expanded into software security and quality testing tools through past acquisitions, alongside its core chip design business. |
| 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 Synopsys's core EDA and IP revenue growth, integration and portfolio strategy involving its former software integrity business, and its competitive position against Cadence. |
- 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
- Leading position in EDA software alongside Cadence, with deep semiconductor IP portfolio
- Broad customer relationships across virtually all major chipmakers
- Direct beneficiary of rising design complexity driven by AI chip development
- 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 concentration in a duopoly-like EDA market alongside Cadence
- Portfolio and strategic changes tied to its former software integrity business
- Premium valuation multiple typical of high-quality recurring-revenue software names
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