VECO vs. CDNS

Last updated Jun 4, 2026

VECO (Veeco Instruments Inc.) and CDNS (Cadence Design Systems, Inc.) are both stocks. Both are in the Technology sector — VECO in Semiconductor Equipment & Materials, CDNS in Software - Application. Over the past 10 years, VECO returned 12.86%/yr vs 32.37%/yr for CDNS. At a 0.41 correlation, their price movements are largely independent.

Performance

VECO vs. CDNS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Veeco Instruments Inc. (VECO) 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, VECO achieves a 111.55% return, which is significantly higher than CDNS's 30.53% return. Over the past 10 years, VECO has underperformed CDNS with an annualized return of 12.86%, while CDNS has yielded a comparatively higher 32.37% annualized return.

VECO

• 1D: -0.90%
• 1M: 18.71%
• YTD: 111.55%
• 6M: 92.24%
• 1Y: 199.31%
• 3Y*: 34.09%
• 5Y*: 19.93%
• 10Y*: 12.86%

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)

VECO vs. CDNS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VECO Veeco Instruments Inc.	111.55%	6.64%	-13.63%	67.01%	-34.74%	64.00%	18.22%	98.18%	-50.10%	-49.06%
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 VECO 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	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Nov 30, 1994	0.41

The correlation between VECO and CDNS shifts across timeframes, from 0.39 (1 year) to 0.51 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap VECO : $3.65B CDNS : $111.68B
EPS VECO : $0.38 CDNS : $4.28
PE Ratio VECO : 158.34 CDNS : 95.24
PEG Ratio VECO : 1.65 CDNS : 7.26
PS Ratio VECO : 5.59 CDNS : 20.17
PB Ratio VECO : 4.13 CDNS : 12.80
Total Revenue (TTM) VECO : $655.34M CDNS : $5.53B
Gross Profit (TTM) VECO : $252.77M CDNS : $4.91B
EBITDA (TTM) VECO : $48.45M CDNS : $1.87B

Return for Risk

VECO vs. CDNS — Risk / Return Rank

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

VECO

VECO Risk / Return Rank: 96
VECO Sharpe Ratio Rank: 96
VECO Sortino Ratio Rank: 95
VECO Omega Ratio Rank: 93
VECO Calmar Ratio Rank: 97
VECO Martin Ratio Rank: 97

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.

VECO vs. CDNS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Veeco Instruments Inc. (VECO) 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.

	VECO	CDNS	Difference
Sharpe ratio Return per unit of total volatility	3.56	1.04	+2.52
Sortino ratio Return per unit of downside risk	4.05	1.69	+2.36
Omega ratio Gain probability vs. loss probability	1.51	1.21	+0.30
Calmar ratio Return relative to maximum drawdown	9.90	1.36	+8.53
Martin ratio Return relative to average drawdown	26.14	2.89	+23.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VECO vs. CDNS - Sharpe Ratio Comparison

The current VECO Sharpe Ratio is 3.56, which is higher than the CDNS Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of VECO 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

	VECO	CDNS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.56	1.04	+2.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.74	-0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.96	-0.70
Sharpe Ratio (All Time) Calculated using the full available price history	0.09	0.24	-0.15

Drawdowns

VECO vs. CDNS - Drawdown Comparison

The maximum VECO drawdown since its inception was -96.68%, roughly equal to the maximum CDNS drawdown of -93.13%. Use the drawdown chart below to compare losses from any high point for VECO and CDNS.

Drawdown Indicators

	VECO	CDNS	Difference
Max Drawdown Largest peak-to-trough decline	-96.68%	-93.13%	-3.55%
Max Drawdown (1Y) Largest decline over 1 year	-20.27%	-28.85%	+8.58%
Max Drawdown (3Y) Largest decline over 3 years	-64.20%	-29.05%	-35.15%
Max Drawdown (5Y) Largest decline over 5 years	-64.20%	-29.59%	-34.61%
Max Drawdown (10Y) Largest decline over 10 years	-80.96%	-32.12%	-48.84%
Current Drawdown Current decline from peak	-47.65%	-2.01%	-45.64%
Average Drawdown Average peak-to-trough decline	-70.50%	-39.65%	-30.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.66%	13.58%	-5.92%

Volatility

VECO vs. CDNS - Volatility Comparison

Veeco Instruments Inc. (VECO) has a higher volatility of 27.46% compared to Cadence Design Systems, Inc. (CDNS) at 12.68%. This indicates that VECO'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.

Volatility by Period

	VECO	CDNS	Difference
Volatility (1M) Calculated over the trailing 1-month period	27.46%	12.68%	+14.78%
Volatility (6M) Calculated over the trailing 6-month period	45.57%	30.56%	+15.01%
Volatility (1Y) Calculated over the trailing 1-year period	56.50%	37.65%	+18.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.55%	35.94%	+8.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	51.01%	33.97%	+17.04%

Dividends

VECO vs. CDNS - Dividend Comparison

Neither VECO nor CDNS has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

VECO vs. CDNS - Profitability Comparison

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

VECO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Veeco Instruments Inc. reported a gross profit of 55.83M and revenue of 158.34M. Therefore, the gross margin over that period was 35.3%.

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%.

VECO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Veeco Instruments Inc. reported an operating income of -2.66M and revenue of 158.34M, resulting in an operating margin of -1.7%.

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%.

VECO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Veeco Instruments Inc. reported a net income of -324.00K and revenue of 158.34M, resulting in a net margin of -0.2%.

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 VECO and CDNS in my portfolio?

VECO 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.

Which is riskier, VECO or CDNS?

VECO has higher volatility (27.46%) compared to CDNS (12.68%). In terms of maximum drawdown, VECO dropped -96.68% vs CDNS's -93.13%.

Which has better risk-adjusted returns?

VECO currently has the higher Sharpe Ratio (3.56 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.