Manhattan Associates (NASDAQ:MANH) and Cadence Design Systems (NASDAQ:CDNS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Risk and Volatility
Manhattan Associates has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Profitability
This table compares Manhattan Associates and Cadence Design Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Manhattan Associates | 14.09% | 52.61% | 21.11% |
| Cadence Design Systems | 42.68% | 48.31% | 28.21% |
Institutional and Insider Ownership
83.9% of Cadence Design Systems shares are owned by institutional investors. 0.7% of Manhattan Associates shares are owned by insiders. Comparatively, 2.6% of Cadence Design Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Manhattan Associates and Cadence Design Systems' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Manhattan Associates | $617.95 million | 11.81 | $85.76 million | $1.32 | 86.64 |
| Cadence Design Systems | $2.34 billion | 15.38 | $988.98 million | $3.53 | 36.49 |
Cadence Design Systems has higher revenue and earnings than Manhattan Associates. Cadence Design Systems is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Manhattan Associates and Cadence Design Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Manhattan Associates | 1 | 0 | 4 | 0 | 2.60 |
| Cadence Design Systems | 1 | 2 | 9 | 0 | 2.67 |
Manhattan Associates presently has a consensus target price of $121.00, suggesting a potential upside of 5.81%. Cadence Design Systems has a consensus target price of $140.9167, suggesting a potential upside of 9.40%. Given Cadence Design Systems' stronger consensus rating and higher probable upside, analysts clearly believe Cadence Design Systems is more favorable than Manhattan Associates.
Summary
Cadence Design Systems beats Manhattan Associates on 11 of the 14 factors compared between the two stocks.
