Cadence Design Systems (CDNS) Competitors

Salesforce (NYSE:CRM) and Cadence Design Systems (NASDAQ:CDNS) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, media sentiment, risk and earnings.

Do institutionals & insiders have more ownership in CRM or CDNS?

80.4% of Salesforce shares are held by institutional investors. Comparatively, 84.9% of Cadence Design Systems shares are held by institutional investors. 3.2% of Salesforce shares are held by company insiders. Comparatively, 0.4% of Cadence Design Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Which has more risk & volatility, CRM or CDNS?

Salesforce has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Does the media prefer CRM or CDNS?

In the previous week, Salesforce had 55 more articles in the media than Cadence Design Systems. MarketBeat recorded 85 mentions for Salesforce and 30 mentions for Cadence Design Systems. Cadence Design Systems' average media sentiment score of 1.33 beat Salesforce's score of 1.08 indicating that Cadence Design Systems is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Salesforce	63 Very Positive mention(s)	5 Positive mention(s)	14 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Cadence Design Systems	21 Very Positive mention(s)	0 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate CRM or CDNS?

Salesforce presently has a consensus target price of $349.08, suggesting a potential upside of 28.40%. Cadence Design Systems has a consensus target price of $325.23, suggesting a potential upside of 5.10%. Given Salesforce's stronger consensus rating and higher possible upside, equities analysts clearly believe Salesforce is more favorable than Cadence Design Systems.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salesforce	2 Sell rating(s)	8 Hold rating(s)	28 Buy rating(s)	4 Strong Buy rating(s)	2.81
Cadence Design Systems	1 Sell rating(s)	1 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.77

Which has stronger valuation and earnings, CRM or CDNS?

Salesforce has higher revenue and earnings than Cadence Design Systems. Salesforce is trading at a lower price-to-earnings ratio than Cadence Design Systems, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Salesforce	$37.90B	6.86	$6.20B	$6.39	42.54
Cadence Design Systems	$4.64B	18.21	$1.06B	$3.95	78.34

Is CRM or CDNS more profitable?

Cadence Design Systems has a net margin of 22.18% compared to Salesforce's net margin of 16.08%. Cadence Design Systems' return on equity of 29.36% beat Salesforce's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Salesforce	16.08%	12.94%	7.99%
Cadence Design Systems	22.18%	29.36%	15.60%

Summary

Salesforce beats Cadence Design Systems on 10 of the 17 factors compared between the two stocks.