AVGO vs. CDNS
AVGO (Broadcom Inc.) and CDNS (Cadence Design Systems, Inc.) are both stocks. Both are in the Technology sector — AVGO in Semiconductors, CDNS in Software - Application. Over the past 10 years, AVGO returned 40.96%/yr vs 31.77%/yr for CDNS. A 0.53 correlation means they provide meaningful diversification when combined.
Performance
AVGO vs. CDNS - Performance Comparison
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Returns By Period
In the year-to-date period, AVGO achieves a 10.62% return, which is significantly lower than CDNS's 23.16% return. Over the past 10 years, AVGO has outperformed CDNS with an annualized return of 40.96%, while CDNS has yielded a comparatively lower 31.77% annualized return.
AVGO
- 1D
- -0.91%
- 1M
- -8.33%
- YTD
- 10.62%
- 6M
- 6.58%
- 1Y
- 50.41%
- 3Y*
- 67.17%
- 5Y*
- 55.09%
- 10Y*
- 40.96%
CDNS
- 1D
- 0.32%
- 1M
- 8.58%
- YTD
- 23.16%
- 6M
- 19.10%
- 1Y
- 25.05%
- 3Y*
- 17.22%
- 5Y*
- 24.39%
- 10Y*
- 31.77%
AVGO vs. CDNS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AVGO Broadcom Inc. | 10.62% | 50.63% | 110.49% | 104.18% | -13.27% | 56.48% | 44.88% | 29.05% | 2.18% | 48.19% |
CDNS Cadence Design Systems, Inc. | 23.16% | 4.03% | 10.31% | 69.55% | -13.80% | 36.59% | 96.70% | 59.52% | 3.97% | 65.82% |
Correlation
The correlation between AVGO and CDNS is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.39 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Aug 6, 2009 | 0.53 |
The correlation between AVGO and CDNS shifts across timeframes, from 0.39 (1 year) to 0.59 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
AVGO:
$1.86T
CDNS:
$105.37B
AVGO:
$6.01
CDNS:
$4.28
AVGO:
63.58
CDNS:
89.86
AVGO:
0.79
CDNS:
6.85
AVGO:
24.70
CDNS:
19.03
AVGO:
21.24
CDNS:
12.08
AVGO:
$75.47B
CDNS:
$5.53B
AVGO:
$50.53B
CDNS:
$4.91B
AVGO:
$41.76B
CDNS:
$1.87B
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Return for Risk
AVGO vs. CDNS — Risk / Return Rank
AVGO
CDNS
AVGO vs. CDNS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Broadcom Inc. (AVGO) and Cadence Design Systems, Inc. (CDNS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AVGO | CDNS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.47 | ||
| Sortino ratioReturn per unit of downside risk | +0.50 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.15 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.77 | 0.87 | +0.90 |
| Martin ratioReturn relative to average drawdown | 4.11 | 1.84 | +2.27 |
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Drawdowns
AVGO vs. CDNS - Drawdown Comparison
The maximum AVGO drawdown since its inception was -48.30%, smaller than the maximum CDNS drawdown of -93.13%. Use the drawdown chart below to compare losses from any high point for AVGO and CDNS.
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Drawdown Indicators
| AVGO | CDNS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.30% | -93.13% | +44.83% |
Max Drawdown (1Y)Largest decline over 1 year | -28.67% | -28.85% | +0.18% |
Max Drawdown (3Y)Largest decline over 3 years | -41.15% | -29.05% | -12.10% |
Max Drawdown (5Y)Largest decline over 5 years | -41.15% | -29.59% | -11.56% |
Max Drawdown (10Y)Largest decline over 10 years | -48.30% | -32.12% | -16.18% |
Current DrawdownCurrent decline from peak | -20.66% | -7.55% | -13.11% |
Average DrawdownAverage peak-to-trough decline | -7.98% | -39.62% | +31.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 12.30% | 13.63% | -1.33% |
Volatility
AVGO vs. CDNS - Volatility Comparison
Broadcom Inc. (AVGO) has a higher volatility of 20.53% compared to Cadence Design Systems, Inc. (CDNS) at 16.52%. This indicates that AVGO's price experiences larger fluctuations and is considered to be riskier than CDNS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AVGO | CDNS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 20.53% | 16.52% | +4.01% |
Volatility (6M)Calculated over the trailing 6-month period | 35.04% | 31.73% | +3.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 45.57% | 38.94% | +6.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 43.39% | 36.17% | +7.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 39.52% | 34.12% | +5.40% |
Dividends
AVGO vs. CDNS - Dividend Comparison
AVGO's dividend yield for the trailing twelve months is around 0.65%, while CDNS has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AVGO Broadcom Inc. | 0.65% | 0.70% | 0.94% | 1.71% | 3.02% | 2.24% | 3.05% | 3.54% | 3.11% | 1.87% | 1.43% | 1.13% |
CDNS Cadence Design Systems, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
AVGO vs. CDNS - Financials Comparison
This section allows you to compare key financial metrics between Broadcom Inc. and Cadence Design Systems, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
AVGO vs. CDNS - Profitability Comparison
AVGO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Broadcom Inc. reported a gross profit of 14.92B and revenue of 22.19B. Therefore, the gross margin over that period was 67.2%.
CDNS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Cadence Design Systems, Inc. reported a gross profit of 1.41B and revenue of 1.47B. Therefore, the gross margin over that period was 95.9%.
AVGO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Broadcom Inc. reported an operating income of 10.87B and revenue of 22.19B, resulting in an operating margin of 49.0%.
CDNS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Cadence Design Systems, Inc. reported an operating income of 431.33M and revenue of 1.47B, resulting in an operating margin of 29.3%.
AVGO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Broadcom Inc. reported a net income of 9.31B and revenue of 22.19B, resulting in a net margin of 42.0%.
CDNS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Cadence Design Systems, Inc. reported a net income of 335.66M and revenue of 1.47B, resulting in a net margin of 22.8%.
Frequently Asked Questions
AVGO and CDNS have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AVGO has higher volatility (20.53%) compared to CDNS (16.52%). In terms of maximum drawdown, AVGO dropped -48.30% vs CDNS's -93.13%.
AVGO currently has the higher Sharpe Ratio (1.11 vs 0.65), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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