Comprehensive Stock Comparison
Compare Bentley Systems, Incorporated (BSY) vs Cadence Design Systems, Inc. (CDNS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | CDNS | 14.1% revenue growth vs BSY's 11.0% |
| Value | BSY | Lower P/E (26.9x vs 37.3x), PEG 1.77 vs 2.67 |
| Quality / Margins | CDNS | 20.9% net margin vs BSY's 18.5% |
| Stability / Safety | BSY | Beta 0.79 vs CDNS's 1.33 |
| Dividends | BSY | 0.7% yield; 3-year raise streak; CDNS pays no meaningful dividend |
| Momentum (1Y) | CDNS | +20.3% vs BSY's -16.1% |
| Efficiency (ROA) | CDNS | 10.9% ROA vs BSY's 7.8%, ROIC 25.9% vs 11.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Bentley Systems provides infrastructure engineering software solutions for designing, constructing, and operating infrastructure assets like roads, bridges, and utilities. It generates revenue primarily through recurring subscription fees — accounting for over 90% of total revenue — with the remainder from perpetual licenses and professional services. The company's moat lies in its deep domain expertise and comprehensive software ecosystem that creates high switching costs for engineering professionals in specialized infrastructure sectors.
Cadence Design Systems is a leading provider of electronic design automation (EDA) software and hardware used to design semiconductors and electronic systems. It generates revenue primarily through software licenses and maintenance (~70% of revenue) and hardware systems for chip verification (~30%), with its tools being essential for designing everything from smartphones to automotive chips. The company's moat comes from its deeply entrenched position in the semiconductor design workflow—its tools are industry standards that engineers must use to design complex chips, creating high switching costs and network effects.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
CDNS leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). BSY leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
CDNS is the larger business by revenue, generating $5.3B annually — 3.5x BSY's $1.5B. Profitability is closely matched — net margins range from 20.9% (CDNS) to 18.5% (BSY). On growth, BSY holds the edge at +11.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | BSYBentley Systems, … | CDNSCadence Design Sy… |
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $5.3B |
| EBITDAEarnings before interest/tax | $459M | $1.7B |
| Net IncomeAfter-tax profit | $278M | $1.1B |
| Free Cash FlowCash after capex | $520M | $1.6B |
| Gross MarginGross profit ÷ Revenue | +81.5% | +96.2% |
| Operating MarginEBIT ÷ Revenue | +24.1% | +28.2% |
| Net MarginNet income ÷ Revenue | +18.5% | +20.9% |
| FCF MarginFCF ÷ Revenue | +34.6% | +30.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.9% | +6.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +12.5% | +14.5% |
Valuation Metrics
At 43.0x trailing earnings, BSY trades at a 42% valuation discount to CDNS's 74.2x P/E. Adjusting for growth (PEG ratio), BSY offers better value at 2.84x vs CDNS's 5.31x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | BSYBentley Systems, … | CDNSCadence Design Sy… |
|---|---|---|
| Market CapShares × price | $11.1B | $81.9B |
| Enterprise ValueMkt cap + debt − cash | $12.2B | $81.4B |
| Trailing P/EPrice ÷ TTM EPS | 43.00x | 74.24x |
| Forward P/EPrice ÷ next-FY EPS est. | 26.86x | 37.33x |
| PEG RatioP/E ÷ EPS growth rate | 2.84x | 5.31x |
| EV / EBITDAEnterprise value multiple | 33.68x | 43.35x |
| Price / SalesMarket cap ÷ Revenue | 7.36x | 15.47x |
| Price / BookPrice ÷ Book value/share | 10.23x | 15.05x |
| Price / FCFMarket cap ÷ FCF | 21.24x | 51.62x |
Profitability & Efficiency
BSY delivers a 23.4% return on equity — every $100 of shareholder capital generates $23 in annual profit, vs $20 for CDNS. CDNS carries lower financial leverage with a 0.45x debt-to-equity ratio, signaling a more conservative balance sheet compared to BSY's 1.08x. On the Piotroski fundamental quality scale (0–9), BSY scores 9/9 vs CDNS's 6/9, reflecting strong financial health.
| Metric | BSYBentley Systems, … | CDNSCadence Design Sy… |
|---|---|---|
| ROE (TTM)Return on equity | +23.4% | +20.3% |
| ROA (TTM)Return on assets | +7.8% | +10.9% |
| ROICReturn on invested capital | +11.4% | +25.9% |
| ROCEReturn on capital employed | +14.0% | +20.5% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 6 |
| Debt / EquityFinancial leverage | 1.08x | 0.45x |
| Net DebtTotal debt minus cash | $1.2B | -$521M |
| Cash & Equiv.Liquid assets | $123M | $3.0B |
| Total DebtShort + long-term debt | $1.3B | $2.5B |
| Interest CoverageEBIT ÷ Interest expense | 9.01x | 13.57x |
Total Returns (with DRIP)
A $10,000 investment in CDNS five years ago would be worth $20,442 today (with dividends reinvested), compared to $8,429 for BSY. Over the past 12 months, CDNS leads with a +20.3% total return vs BSY's -16.1%. The 3-year compound annual growth rate (CAGR) favors CDNS at 16.0% vs BSY's -2.7% — a key indicator of consistent wealth creation.
| Metric | BSYBentley Systems, … | CDNSCadence Design Sy… |
|---|---|---|
| YTD ReturnYear-to-date | -4.2% | -2.9% |
| 1-Year ReturnPast 12 months | -16.1% | +20.3% |
| 3-Year ReturnCumulative with dividends | -8.0% | +56.2% |
| 5-Year ReturnCumulative with dividends | -15.7% | +104.4% |
| 10-Year ReturnCumulative with dividends | +12.1% | +1298.6% |
| CAGR (3Y)Annualised 3-year return | -2.7% | +16.0% |
Risk & Volatility
BSY is the less volatile stock with a 0.79 beta — it tends to amplify market swings less than CDNS's 1.33 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CDNS currently trades 80.1% from its 52-week high vs BSY's 61.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BSYBentley Systems, … | CDNSCadence Design Sy… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.79x | 1.33x |
| 52-Week HighHighest price in past year | $59.25 | $376.45 |
| 52-Week LowLowest price in past year | $30.96 | $221.56 |
| % of 52W HighCurrent price vs 52-week peak | +61.7% | +80.1% |
| RSI (14)Momentum oscillator 0–100 | 59.1 | 49.6 |
| Avg Volume (50D)Average daily shares traded | 2.1M | 1.9M |
Analyst Outlook
Wall Street rates BSY as "Buy" and CDNS as "Buy". Consensus price targets imply 31.3% upside for BSY (target: $48) vs 25.4% for CDNS (target: $378). BSY is the only dividend payer here at 0.70% yield — a key consideration for income-focused portfolios.
| Metric | BSYBentley Systems, … | CDNSCadence Design Sy… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $48.00 | $377.88 |
| # AnalystsCovering analysts | 12 | 30 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | — |
| Dividend StreakConsecutive years of raises | 3 | 0 |
| Dividend / ShareAnnual DPS | $0.26 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.1% | +1.1% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Sep 20 | Feb 26 | Change |
|---|---|---|---|
| Bentley Systems, In… (BSY) | 100 | 102.24 | +2.2% |
| Cadence Design Syst… (CDNS) | 100 | 266.22 | +166.2% |
Cadence Design Syst… (CDNS) returned +104% over 5 years vs Bentley Systems, In… (BSY)'s -16%. A $10,000 investment in CDNS 5 years ago would be worth $20,442 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bentley Systems, In… (BSY) | $692M | $1.5B | +117.1% |
| Cadence Design Syst… (CDNS) | $1.8B | $5.3B | +191.7% |
Cadence Design Systems, Inc.'s revenue grew from $1.8B (2016) to $5.3B (2025) — a 12.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bentley Systems, In… (BSY) | 20.5% | 18.5% | -9.9% |
| Cadence Design Syst… (CDNS) | 11.2% | 20.9% | +87.2% |
Cadence Design Systems, Inc.'s net margin went from 11% (2016) to 21% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Bentley Systems, In… (BSY) | 96.5 | 44.9 | -53.5% |
| Cadence Design Syst… (CDNS) | 57.3 | 77 | +34.4% |
Bentley Systems, Incorporated has traded in a 45x–161x P/E range over 6 years; current trailing P/E is ~43x. Cadence Design Systems, Inc. has traded in a 20x–78x P/E range over 9 years; current trailing P/E is ~74x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bentley Systems, In… (BSY) | 0.54 | 0.85 | +57.4% |
| Cadence Design Syst… (CDNS) | 0.7 | 4.06 | +480.0% |
Cadence Design Systems, Inc.'s EPS grew from $0.70 (2016) to $4.06 (2025) — a 22% CAGR.
Chart 6Free Cash Flow — 5 Years
Bentley Systems, Incorporated generated $520M FCF in 2025 (+92% vs 2021). Cadence Design Systems, Inc. generated $2B FCF in 2025 (+53% vs 2021).
BSY vs CDNS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BSY or CDNS a better buy right now?
Bentley Systems, Incorporated (BSY) offers the better valuation at 43.0x trailing P/E (26.9x 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.
02Which has the better valuation — BSY or CDNS?
On trailing P/E, Bentley Systems, Incorporated (BSY) is the cheapest at 43.0x versus Cadence Design Systems, Inc. at 74.2x. On forward P/E, Bentley Systems, Incorporated is actually cheaper at 26.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Bentley Systems, Incorporated wins at 1.77x versus Cadence Design Systems, Inc.'s 2.67x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — BSY or CDNS?
Over the past 5 years, Cadence Design Systems, Inc. (CDNS) delivered a total return of +104.4%, compared to -15.7% for Bentley Systems, Incorporated (BSY). A $10,000 investment in CDNS five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CDNS returned +1299% versus BSY's +12.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — BSY or CDNS?
By beta (market sensitivity over 5 years), Bentley Systems, Incorporated (BSY) is the lower-risk stock at 0.79β versus Cadence Design Systems, Inc.'s 1.33β — meaning CDNS is approximately 67% 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.
05Which has better profit margins — BSY or CDNS?
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 85.6%, 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.
06Is BSY or CDNS more undervalued right now?
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 1.77x versus Cadence Design Systems, Inc.'s 2.67x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Bentley Systems, Incorporated (BSY) trades at 26.9x forward P/E versus 37.3x for Cadence Design Systems, Inc. — 10.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BSY: 31.3% to $48.00.
07Which pays a better dividend — BSY or CDNS?
In this comparison, BSY (0.7% yield) pays a dividend. CDNS does not pay a meaningful dividend and should not be held primarily for income.
08Is BSY or CDNS better for a retirement portfolio?
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 0.79), 0.7% yield). Both have compounded well over 10 years (BSY: +12.1%, CDNS: +1299%), 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.
09What are the main differences between BSY and CDNS?
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.
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