STM vs. CDNS
STM (STMicroelectronics N.V.) and CDNS (Cadence Design Systems, Inc.) are both stocks. Both are in the Technology sector — STM in Semiconductors, CDNS in Software - Application. Over the past 10 years, STM returned 23.22%/yr vs 30.51%/yr for CDNS. Their 0.45 correlation means their historical movements had little consistent relationship.
Performance
STM vs. CDNS - Performance Comparison
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Returns By Period
In the year-to-date period, STM achieves a 106.87% return, which is significantly higher than CDNS's 10.28% return. Over the past 10 years, STM has underperformed CDNS with an annualized return of 23.22%, while CDNS has yielded a comparatively higher 30.51% annualized return.
STM
- 1D
- 3.71%
- 1M
- -25.16%
- 6M
- 87.63%
- YTD
- 106.87%
- 1Y
- 105.23%
- 3Y*
- 1.01%
- 5Y*
- 7.22%
- 10Y*
- 23.22%
- ALL TIME*
- 10.44%
CDNS
- 1D
- 1.80%
- 1M
- -8.63%
- 6M
- 8.28%
- YTD
- 10.28%
- 1Y
- 3.28%
- 3Y*
- 13.75%
- 5Y*
- 18.78%
- 10Y*
- 30.51%
- ALL TIME*
- 10.76%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $983.80M | $815.14M | $887.85M | |
| $842.87M | $809.68M | $854.37M |
STM vs. CDNS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
STM STMicroelectronics N.V. | 106.87% | 5.28% | -49.67% | 41.66% | -26.76% | 32.39% | 38.91% | 96.34% | -35.65% | 94.77% |
CDNS Cadence Design Systems, Inc. | 10.28% | 4.03% | 10.31% | 69.55% | -13.80% | 36.59% | 96.70% | 59.52% | 3.97% | 65.82% |
Correlation
The correlation between STM and CDNS is 0.46, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.46 |
Correlation (3Y) Balances recent behavior with more history. | 0.45 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.52 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.53 |
Correlation (All Time) Calculated using the full available price history since Dec 8, 1994 | 0.45 |
The correlation between STM and CDNS has been stable across timeframes, ranging from 0.45 to 0.53 - a consistent structural relationship.
Fundamentals
STM:
$47.71B
CDNS:
$95.08B
STM:
$0.49
CDNS:
$5.03
STM:
108.39
CDNS:
68.51
STM:
3.85
CDNS:
16.17
STM:
2.81
CDNS:
10.89
STM:
$13.08B
CDNS:
$5.84B
STM:
$4.49B
CDNS:
$5.34B
STM:
$2.21B
CDNS:
$1.94B
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Return for Risk
STM vs. CDNS — Risk / Return Rank
STM
CDNS
STM vs. CDNS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for STMicroelectronics N.V. (STM) 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.
| STM | CDNS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.75 | ||
| Sortino ratioReturn per unit of downside risk | +1.93 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.05 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 2.99 | 0.11 | +2.87 |
| Martin ratioReturn relative to average drawdown | 9.60 | 0.23 | +9.37 |
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Drawdowns
STM vs. CDNS - Drawdown Comparison
The maximum STM drawdown since its inception was -94.40%, roughly equal to the maximum CDNS drawdown of -93.13%. Use the drawdown chart below to compare losses from any high point for STM and CDNS.
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Drawdown Indicators
| STM | CDNS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -94.40% | -93.13% | -1.27% |
Max Drawdown (1Y)Largest decline over 1 year | -35.43% | -28.85% | -6.58% |
Max Drawdown (3Y)Largest decline over 3 years | -66.32% | -29.05% | -37.27% |
Max Drawdown (5Y)Largest decline over 5 years | -66.66% | -29.59% | -37.07% |
Max Drawdown (10Y)Largest decline over 10 years | -66.66% | -32.12% | -34.54% |
Current DrawdownCurrent decline from peak | -33.04% | -17.21% | -15.83% |
Average DrawdownAverage peak-to-trough decline | -55.04% | -39.53% | -15.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 11.00% | 14.31% | -3.31% |
Volatility
STM vs. CDNS - Volatility Comparison
STMicroelectronics N.V. (STM) has a higher volatility of 26.94% compared to Cadence Design Systems, Inc. (CDNS) at 13.23%. This indicates that STM'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
| STM | CDNS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 26.94% | 13.23% | +13.71% |
Volatility (6M)Calculated over the trailing 6-month period | 50.32% | 33.28% | +17.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 58.00% | 40.53% | +17.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 46.83% | 36.63% | +10.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 44.98% | 34.27% | +10.71% |
Dividends
STM vs. CDNS - Dividend Comparison
STM's dividend yield for the trailing twelve months is around 0.67%, while CDNS has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
STM STMicroelectronics N.V. | 0.67% | 1.39% | 1.32% | 0.48% | 0.67% | 0.45% | 0.50% | 0.89% | 1.73% | 0.98% | 2.10% | 5.11% |
Financials
STM vs. CDNS - Financials Comparison
This section allows you to compare key financial metrics between STMicroelectronics N.V. 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
STM vs. CDNS - Profitability Comparison
STM - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, STMicroelectronics N.V. reported a gross profit of 1.22B and revenue of 3.49B. Therefore, the gross margin over that period was 34.8%.
CDNS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 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%.
STM - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, STMicroelectronics N.V. reported an operating income of 220.00M and revenue of 3.49B, resulting in an operating margin of 6.3%.
CDNS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 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%.
STM - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, STMicroelectronics N.V. reported a net income of 222.00M and revenue of 3.49B, resulting in a net margin of 6.4%.
CDNS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 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%.
Frequently Asked Questions
STM and CDNS have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
STM has higher volatility (26.94%) compared to CDNS (13.23%). In terms of maximum drawdown, STM dropped -94.40% vs CDNS's -93.13%.
STM currently has the higher Sharpe Ratio (1.83 vs 0.08), 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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