CDNS vs. SNPS
CDNS (Cadence Design Systems, Inc.) and SNPS (Synopsys, Inc.) are both stocks. Both are in the Technology sector — CDNS in Software - Application, SNPS in Software - Infrastructure. Over the past 10 years, CDNS returned 29.88%/yr vs 21.94%/yr for SNPS. Their 0.53 correlation means they have sometimes moved together and sometimes differently.
Performance
CDNS vs. SNPS - Performance Comparison
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Returns By Period
In the year-to-date period, CDNS achieves a 7.83% return, which is significantly higher than SNPS's -14.67% return. Over the past 10 years, CDNS has outperformed SNPS with an annualized return of 29.88%, while SNPS has yielded a comparatively lower 21.94% annualized return.
CDNS
- 1D
- -1.04%
- 1M
- -10.30%
- 6M
- 24.19%
- YTD
- 7.83%
- 1Y
- -6.50%
- 3Y*
- 13.75%
- 5Y*
- 17.41%
- 10Y*
- 29.88%
- ALL TIME*
- 10.68%
SNPS
- 1D
- -0.75%
- 1M
- -9.37%
- 6M
- -4.33%
- YTD
- -14.67%
- 1Y
- -36.23%
- 3Y*
- -3.16%
- 5Y*
- 6.51%
- 10Y*
- 21.94%
- ALL TIME*
- 12.41%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $916.63M | $795.50M | $887.20M | |
SNPS Synopsys, Inc. | $777.20M | $765.31M | $904.57M |
CDNS vs. SNPS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CDNS Cadence Design Systems, Inc. | 7.83% | 4.03% | 10.31% | 69.55% | -13.80% | 36.59% | 96.70% | 59.52% | 3.97% | 65.82% |
SNPS Synopsys, Inc. | -14.67% | -3.22% | -5.74% | 61.27% | -13.35% | 42.15% | 86.24% | 65.24% | -1.17% | 44.82% |
Correlation
The correlation between CDNS and SNPS is 0.74, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.74 |
Correlation (3Y) Balances recent behavior with more history. | 0.82 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.85 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.85 |
Correlation (All Time) Calculated using the full available price history since Feb 26, 1992 | 0.53 |
Over the past year, CDNS and SNPS have become more correlated (0.74) than their long-term average of 0.53, meaning their price movements have been converging.
Fundamentals
CDNS:
$92.83B
SNPS:
$76.75B
CDNS:
$5.03
SNPS:
$4.50
CDNS:
66.99
SNPS:
89.03
CDNS:
5.11
SNPS:
3.82
CDNS:
15.81
SNPS:
7.93
CDNS:
10.64
SNPS:
2.52
CDNS:
$5.84B
SNPS:
$8.68B
CDNS:
$5.34B
SNPS:
$6.38B
CDNS:
$1.94B
SNPS:
$2.22B
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Return for Risk
CDNS vs. SNPS — Risk / Return Rank
CDNS
SNPS
CDNS vs. SNPS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Cadence Design Systems, Inc. (CDNS) and Synopsys, Inc. (SNPS). 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.
| CDNS | SNPS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.48 | ||
| Sortino ratioReturn per unit of downside risk | +0.62 | ||
| Omega ratioGain probability vs. loss probability | 1.00 | 0.90 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | -0.23 | -0.90 | +0.67 |
| Martin ratioReturn relative to average drawdown | -0.45 | -1.33 | +0.88 |
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Drawdowns
CDNS vs. SNPS - Drawdown Comparison
The maximum CDNS drawdown since its inception was -93.13%, which is greater than SNPS's maximum drawdown of -60.95%. Use the drawdown chart below to compare losses from any high point for CDNS and SNPS.
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Drawdown Indicators
| CDNS | SNPS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -93.13% | -60.95% | -32.18% |
Max Drawdown (1Y)Largest decline over 1 year | -28.85% | -40.51% | +11.66% |
Max Drawdown (3Y)Largest decline over 3 years | -29.05% | -42.31% | +13.26% |
Max Drawdown (5Y)Largest decline over 5 years | -29.59% | -42.31% | +12.72% |
Max Drawdown (10Y)Largest decline over 10 years | -32.12% | -42.31% | +10.19% |
Current DrawdownCurrent decline from peak | -19.05% | -37.89% | +18.84% |
Average DrawdownAverage peak-to-trough decline | -39.52% | -20.35% | -19.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.51% | 27.57% | -13.06% |
Volatility
CDNS vs. SNPS - Volatility Comparison
Cadence Design Systems, Inc. (CDNS) has a higher volatility of 13.80% compared to Synopsys, Inc. (SNPS) at 12.83%. This indicates that CDNS's price experiences larger fluctuations and is considered to be riskier than SNPS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CDNS | SNPS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.80% | 12.83% | +0.97% |
Volatility (6M)Calculated over the trailing 6-month period | 32.00% | 30.04% | +1.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 39.43% | 56.66% | -17.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.68% | 41.26% | -4.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 34.29% | 35.33% | -1.04% |
Dividends
CDNS vs. SNPS - Dividend Comparison
Neither CDNS nor SNPS has paid dividends to shareholders.
Financials
CDNS vs. SNPS - Financials Comparison
This section allows you to compare key financial metrics between Cadence Design Systems, Inc. and Synopsys, 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
CDNS vs. SNPS - Profitability Comparison
CDNS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Cadence Design Systems, Inc. reported a gross profit of 1.52B and revenue of 1.58B. Therefore, the gross margin over that period was 96.0%.
SNPS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Synopsys, Inc. reported a gross profit of 1.65B and revenue of 2.28B. Therefore, the gross margin over that period was 72.3%.
CDNS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Cadence Design Systems, Inc. reported an operating income of 450.32M and revenue of 1.58B, resulting in an operating margin of 28.4%.
SNPS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Synopsys, Inc. reported an operating income of 120.43M and revenue of 2.28B, resulting in an operating margin of 5.3%.
CDNS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Cadence Design Systems, Inc. reported a net income of 367.08M and revenue of 1.58B, resulting in a net margin of 23.2%.
SNPS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Synopsys, Inc. reported a net income of 16.87M and revenue of 2.28B, resulting in a net margin of 0.7%.
Frequently Asked Questions
CDNS and SNPS have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CDNS has higher volatility (13.80%) compared to SNPS (12.83%). In terms of maximum drawdown, CDNS dropped -93.13% vs SNPS's -60.95%.
CDNS currently has the higher Sharpe Ratio (-0.17 vs -0.64), 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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