Cadence Design Systems (CDNS) Competitors

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

Which has preferable earnings and valuation, KLAC or CDNS?

KLA has higher revenue and earnings than Cadence Design Systems. KLA 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
KLA	$12.16B	9.18	$4.06B	$30.39	27.84
Cadence Design Systems	$4.64B	20.11	$1.06B	$3.70	92.59

Do analysts recommend KLAC or CDNS?

KLA currently has a consensus price target of $890.59, suggesting a potential upside of 5.28%. Cadence Design Systems has a consensus price target of $364.33, suggesting a potential upside of 6.35%. Given Cadence Design Systems' stronger consensus rating and higher probable upside, analysts plainly believe Cadence Design Systems is more favorable than KLA.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLA	0 Sell rating(s)	10 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.44
Cadence Design Systems	1 Sell rating(s)	2 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.73

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

86.7% of KLA shares are held by institutional investors. Comparatively, 84.9% of Cadence Design Systems shares are held by institutional investors. 0.1% of KLA shares are held by insiders. Comparatively, 0.4% of Cadence Design Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Which has more volatility & risk, KLAC or CDNS?

KLA has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Does the media favor KLAC or CDNS?

In the previous week, KLA had 1 more articles in the media than Cadence Design Systems. MarketBeat recorded 34 mentions for KLA and 33 mentions for Cadence Design Systems. KLA's average media sentiment score of 1.55 beat Cadence Design Systems' score of 1.38 indicating that KLA is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
KLA	29 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Cadence Design Systems	26 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Is KLAC or CDNS more profitable?

KLA has a net margin of 33.41% compared to Cadence Design Systems' net margin of 19.88%. KLA's return on equity of 112.41% beat Cadence Design Systems' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
KLA	33.41%	112.41%	28.75%
Cadence Design Systems	19.88%	29.65%	15.38%

Summary

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