DAR vs. CDNS

Last updated Jun 4, 2026

DAR (Darling Ingredients Inc.) and CDNS (Cadence Design Systems, Inc.) are both stocks. DAR operates in Packaged Foods (Consumer Defensive), while CDNS operates in Software - Application (Technology). Over the past 10 years, DAR returned 14.80%/yr vs 32.37%/yr for CDNS. At a 0.21 correlation, their price movements are largely independent.

Performance

DAR vs. CDNS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Darling Ingredients Inc. (DAR) and Cadence Design Systems, Inc. (CDNS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DAR achieves a 70.97% return, which is significantly higher than CDNS's 30.53% return. Over the past 10 years, DAR has underperformed CDNS with an annualized return of 14.80%, while CDNS has yielded a comparatively higher 32.37% annualized return.

DAR

• 1D: 2.01%
• 1M: -4.40%
• YTD: 70.97%
• 6M: 68.12%
• 1Y: 100.29%
• 3Y*: -1.32%
• 5Y*: -3.08%
• 10Y*: 14.80%

CDNS

• 1D: -2.01%
• 1M: 16.73%
• YTD: 30.53%
• 6M: 21.39%
• 1Y: 39.09%
• 3Y*: 21.11%
• 5Y*: 26.34%
• 10Y*: 32.37%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DAR vs. CDNS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DAR Darling Ingredients Inc.	70.97%	6.86%	-32.40%	-20.37%	-9.67%	20.13%	105.41%	45.95%	6.12%	40.43%
CDNS Cadence Design Systems, Inc.	30.53%	4.03%	10.31%	69.55%	-13.80%	36.59%	96.70%	59.52%	3.97%	65.82%

Correlation

The correlation between DAR and CDNS is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.09
Correlation (5Y) Calculated over the trailing 5-year period	0.20
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Sep 23, 1994	0.21

The correlation between DAR and CDNS shifts across timeframes, from 0.08 (1 year) to 0.26 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS DAR : $1.86 CDNS : $4.28
PE Ratio DAR : 33.09 CDNS : 95.24
PS Ratio DAR : 1.17 CDNS : 20.17
Total Revenue (TTM) DAR : $6.31B CDNS : $5.53B
Gross Profit (TTM) DAR : $898.50M CDNS : $4.91B
EBITDA (TTM) DAR : $919.03M CDNS : $1.87B

Return for Risk

DAR vs. CDNS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DAR

DAR Risk / Return Rank: 89
DAR Sharpe Ratio Rank: 92
DAR Sortino Ratio Rank: 92
DAR Omega Ratio Rank: 89
DAR Calmar Ratio Rank: 88
DAR Martin Ratio Rank: 84

CDNS

CDNS Risk / Return Rank: 68
CDNS Sharpe Ratio Rank: 72
CDNS Sortino Ratio Rank: 69
CDNS Omega Ratio Rank: 67
CDNS Calmar Ratio Rank: 66
CDNS Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DAR vs. CDNS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Darling Ingredients Inc. (DAR) 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.

	DAR	CDNS	Difference
Sharpe ratio Return per unit of total volatility	2.62	1.04	+1.58
Sortino ratio Return per unit of downside risk	3.50	1.69	+1.81
Omega ratio Gain probability vs. loss probability	1.42	1.21	+0.21
Calmar ratio Return relative to maximum drawdown	4.10	1.36	+2.74
Martin ratio Return relative to average drawdown	8.65	2.89	+5.77
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DAR vs. CDNS - Sharpe Ratio Comparison

The current DAR Sharpe Ratio is 2.62, which is higher than the CDNS Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of DAR and CDNS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DAR	CDNS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.62	1.04	+1.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.08	0.74	-0.81
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.38	0.96	-0.57
Sharpe Ratio (All Time) Calculated using the full available price history	0.13	0.24	-0.12

Drawdowns

DAR vs. CDNS - Drawdown Comparison

The maximum DAR drawdown since its inception was -97.89%, which is greater than CDNS's maximum drawdown of -93.13%. Use the drawdown chart below to compare losses from any high point for DAR and CDNS.

Drawdown Indicators

	DAR	CDNS	Difference
Max Drawdown Largest peak-to-trough decline	-97.89%	-93.13%	-4.76%
Max Drawdown (1Y) Largest decline over 1 year	-24.61%	-28.85%	+4.24%
Max Drawdown (3Y) Largest decline over 3 years	-60.42%	-29.05%	-31.37%
Max Drawdown (5Y) Largest decline over 5 years	-68.31%	-29.59%	-38.72%
Max Drawdown (10Y) Largest decline over 10 years	-68.31%	-32.12%	-36.19%
Current Drawdown Current decline from peak	-29.40%	-2.01%	-27.39%
Average Drawdown Average peak-to-trough decline	-41.14%	-39.65%	-1.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.63%	13.58%	-1.95%

Volatility

DAR vs. CDNS - Volatility Comparison

The current volatility for Darling Ingredients Inc. (DAR) is 7.41%, while Cadence Design Systems, Inc. (CDNS) has a volatility of 12.68%. This indicates that DAR experiences smaller price fluctuations and is considered to be less risky than CDNS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DAR	CDNS	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.41%	12.68%	-5.27%
Volatility (6M) Calculated over the trailing 6-month period	20.61%	30.56%	-9.95%
Volatility (1Y) Calculated over the trailing 1-year period	38.42%	37.65%	+0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	40.24%	35.94%	+4.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.74%	33.97%	+4.77%

Dividends

DAR vs. CDNS - Dividend Comparison

Neither DAR nor CDNS has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

DAR vs. CDNS - Profitability Comparison

The chart below illustrates the profitability comparison between Darling Ingredients Inc. and Cadence Design Systems, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

DAR - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Darling Ingredients Inc. reported a gross profit of 0.00 and revenue of 1.55B. Therefore, the gross margin over that period was 0.0%.

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%.

DAR - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Darling Ingredients Inc. reported an operating income of 226.77M and revenue of 1.55B, resulting in an operating margin of 14.6%.

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%.

DAR - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Darling Ingredients Inc. reported a net income of 134.31M and revenue of 1.55B, resulting in a net margin of 8.7%.

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

Can I hold both DAR and CDNS in my portfolio?

DAR and CDNS have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DAR or CDNS?

CDNS has higher volatility (12.68%) compared to DAR (7.41%). In terms of maximum drawdown, DAR dropped -97.89% vs CDNS's -93.13%.

Which has better risk-adjusted returns?

DAR currently has the higher Sharpe Ratio (2.62 vs 1.04), 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.