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 better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and media sentiment.

Does the media refer more to CDNS or AMAT?

In the previous week, Applied Materials had 49 more articles in the media than Cadence Design Systems. MarketBeat recorded 78 mentions for Applied Materials and 29 mentions for Cadence Design Systems. Cadence Design Systems' average media sentiment score of 1.38 beat Applied Materials' score of 1.21 indicating that Cadence Design Systems is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cadence Design Systems	23 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	58 Very Positive mention(s)	4 Positive mention(s)	8 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive

Do institutionals and insiders believe in CDNS or AMAT?

84.9% of Cadence Design Systems shares are owned by institutional investors. Comparatively, 80.6% of Applied Materials shares are owned by institutional investors. 0.4% of Cadence Design Systems shares are owned by company insiders. Comparatively, 0.2% of Applied Materials shares are owned 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.

Do analysts rate CDNS or AMAT?

Cadence Design Systems currently has a consensus price target of $368.53, indicating a potential upside of 12.49%. Applied Materials has a consensus price target of $204.54, indicating a potential downside of 6.80%. Given Cadence Design Systems' stronger consensus rating and higher possible upside, 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)	3 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.72
Applied Materials	1 Sell rating(s)	12 Hold rating(s)	18 Buy rating(s)	0 Strong Buy rating(s)	2.55

Which has preferable earnings and 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	19.23	$1.06B	$3.70	88.55
Applied Materials	$28.61B	6.11	$7.18B	$8.39	26.16

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%

Which has more risk and volatility, CDNS or AMAT?

Cadence Design Systems has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Summary

Applied Materials beats Cadence Design Systems on 9 of the 16 factors compared between the two stocks.