ADSK vs CDNS

For growth investors, Cadence Design Systems, Inc.

(CDNS) is the stronger pick with 14. 1% revenue growth year-over-year, versus 10. 5% for Autodesk, Inc. (ADSK). Autodesk, Inc. (ADSK) offers the better valuation at 47. 7x trailing P/E (19. 6x forward), making it the more compelling value choice. Analysts rate Autodesk, Inc. (ADSK) a "Buy" — based on 51 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, Autodesk, Inc.

(ADSK) is the cheapest at 47. 7x versus Cadence Design Systems, Inc. at 87. 1x. On forward P/E, Autodesk, Inc. is actually cheaper at 19. 6x.

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

(CDNS) delivered a total return of +178. 7%, compared to -11. 3% for Autodesk, Inc. (ADSK). Over 10 years, the gap is even starker: CDNS returned +1420% versus ADSK's +314. 4%. 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), Autodesk, Inc.

(ADSK) is the lower-risk stock at 0. 85β versus Cadence Design Systems, Inc. 's 1. 48β — meaning CDNS is approximately 74% more volatile than ADSK relative to the S&P 500. On balance sheet safety, Cadence Design Systems, Inc. (CDNS) carries a lower debt/equity ratio of 45% versus 90% for Autodesk, Inc. — 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 10. 5% for Autodesk, Inc. (ADSK). On earnings-per-share growth, the picture is similar: Cadence Design Systems, Inc. grew EPS 5. 5% year-over-year, compared to 2. 1% for Autodesk, 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 16. 6% for Autodesk, Inc. — 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 23. 3% for ADSK. At the gross margin level — before operating expenses — ADSK leads at 96. 8%, 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.

On forward earnings alone, Autodesk, Inc.

(ADSK) trades at 19. 6x forward P/E versus 44. 7x for Cadence Design Systems, Inc. — 25. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADSK: 35. 5% to $338. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Cadence Design Systems, Inc.

(CDNS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1420% 10Y return). Both have compounded well over 10 years (CDNS: +1420%, ADSK: +314. 4%), 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.

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.