Cadence Design Systems (CDNS) Competitors

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

Do analysts recommend CDNS or AMAT?

Cadence Design Systems currently has a consensus price target of $364.33, indicating a potential downside of 2.42%. Applied Materials has a consensus price target of $194.35, indicating a potential downside of 3.08%. Given Cadence Design Systems' stronger consensus rating and higher possible upside, equities analysts plainly believe Cadence Design Systems is more favorable than Applied Materials.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Design Systems	1 Sell rating(s)	2 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.73
Applied Materials	1 Sell rating(s)	12 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.53

Which has more volatility and risk, CDNS or AMAT?

Cadence Design Systems has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Applied Materials has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Do institutionals and insiders have more ownership in CDNS or AMAT?

84.9% of Cadence Design Systems shares are held by institutional investors. Comparatively, 80.6% of Applied Materials shares are held by institutional investors. 0.4% of Cadence Design Systems shares are held by company insiders. Comparatively, 0.2% of Applied Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Does the media refer more to CDNS or AMAT?

In the previous week, Applied Materials had 34 more articles in the media than Cadence Design Systems. MarketBeat recorded 64 mentions for Applied Materials and 30 mentions for Cadence Design Systems. Applied Materials' average media sentiment score of 1.35 beat Cadence Design Systems' score of 1.34 indicating that Applied Materials is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cadence Design Systems	25 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	54 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings & valuation, CDNS or AMAT?

Applied Materials has higher revenue and earnings than Cadence Design Systems. Applied Materials 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
Cadence Design Systems	$4.64B	21.92	$1.06B	$3.70	100.91
Applied Materials	$27.18B	5.88	$7.18B	$8.39	23.90

Is CDNS or AMAT more profitable?

Applied Materials has a net margin of 23.88% compared to Cadence Design Systems' net margin of 19.88%. Applied Materials' return on equity of 40.96% beat Cadence Design Systems' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cadence Design Systems	19.88%	29.65%	15.38%
Applied Materials	23.88%	40.96%	22.99%

Summary

Applied Materials beats Cadence Design Systems on 10 of the 16 factors compared between the two stocks.