BSY vs CDNS

For growth investors, Cadence Design Systems, Inc.

(CDNS) is the stronger pick with 14. 1% revenue growth year-over-year, versus 11. 0% for Bentley Systems, Incorporated (BSY). Bentley Systems, Incorporated (BSY) offers the better valuation at 37. 7x trailing P/E (23. 6x forward), making it the more compelling value choice. Analysts rate Bentley Systems, Incorporated (BSY) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Bentley Systems, Incorporated (BSY) is the cheapest at 37.

7x versus Cadence Design Systems, Inc. at 87. 4x. On forward P/E, Bentley Systems, Incorporated is actually cheaper at 23. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Bentley Systems, Incorporated wins at 1. 56x versus Cadence Design Systems, Inc. 's 3. 20x — a reasonable growth-adjusted valuation.

Over the past 5 years, Cadence Design Systems, Inc.

(CDNS) delivered a total return of +179. 7%, compared to -31. 6% for Bentley Systems, Incorporated (BSY). Over 10 years, the gap is even starker: CDNS returned +1420% versus BSY's -1. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Bentley Systems, Incorporated (BSY) is the lower-risk stock at 0.

83β versus Cadence Design Systems, Inc. 's 1. 48β — meaning CDNS is approximately 78% more volatile than BSY relative to the S&P 500. On balance sheet safety, Cadence Design Systems, Inc. (CDNS) carries a lower debt/equity ratio of 45% versus 108% for Bentley Systems, Incorporated — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cadence Design Systems, Inc.

(CDNS) is pulling ahead at 14. 1% versus 11. 0% for Bentley Systems, Incorporated (BSY). On earnings-per-share growth, the picture is similar: Bentley Systems, Incorporated grew EPS 18. 1% year-over-year, compared to 5. 5% for Cadence Design Systems, Inc.. Over a 3-year CAGR, CDNS leads at 14. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cadence Design Systems, Inc.

(CDNS) is the more profitable company, earning 20. 9% net margin versus 18. 5% for Bentley Systems, Incorporated — meaning it keeps 20. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CDNS leads at 31. 1% versus 24. 1% for BSY. At the gross margin level — before operating expenses — CDNS leads at 86. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Bentley Systems, Incorporated (BSY) is the more undervalued stock at a PEG of 1. 56x versus Cadence Design Systems, Inc. 's 3. 20x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Bentley Systems, Incorporated (BSY) trades at 23. 6x forward P/E versus 44. 7x for Cadence Design Systems, Inc. — 21. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BSY: 48. 3% to $47. 57.

In this comparison, BSY (0.

8% yield) pays a dividend. CDNS does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Bentley Systems, Incorporated (BSY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

83), 0. 8% yield). Both have compounded well over 10 years (BSY: -1. 1%, CDNS: +1420%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

BSY pays a dividend while CDNS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.