Cadence Design Systems (CDNS) Competitors

KLA (NASDAQ:KLAC) and Cadence Design Systems (NASDAQ:CDNS) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership, media sentiment and dividends.

Which has stronger valuation & earnings, KLAC or CDNS?

KLA has higher revenue and earnings than Cadence Design Systems. KLA is trading at a lower price-to-earnings ratio than Cadence Design Systems, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLA	$12.16B	9.45	$4.06B	$30.39	28.64
Cadence Design Systems	$5.09B	18.72	$1.06B	$3.70	94.49

Does the media favor KLAC or CDNS?

In the previous week, Cadence Design Systems had 8 more articles in the media than KLA. MarketBeat recorded 46 mentions for Cadence Design Systems and 38 mentions for KLA. KLA's average media sentiment score of 1.67 beat Cadence Design Systems' score of 1.33 indicating that KLA is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
KLA	38 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Cadence Design Systems	27 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is KLAC or CDNS more profitable?

KLA has a net margin of 33.41% compared to Cadence Design Systems' net margin of 19.88%. KLA's return on equity of 112.41% beat Cadence Design Systems' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
KLA	33.41%	112.41%	28.75%
Cadence Design Systems	19.88%	29.65%	15.38%

Which has more volatility & risk, KLAC or CDNS?

KLA has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Do analysts rate KLAC or CDNS?

KLA currently has a consensus target price of $890.59, suggesting a potential upside of 2.33%. Cadence Design Systems has a consensus target price of $364.33, suggesting a potential upside of 4.21%. Given Cadence Design Systems' stronger consensus rating and higher possible upside, analysts clearly believe Cadence Design Systems is more favorable than KLA.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLA	0 Sell rating(s)	10 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.44
Cadence Design Systems	1 Sell rating(s)	2 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.73

Do insiders and institutionals hold more shares of KLAC or CDNS?

86.7% of KLA shares are owned by institutional investors. Comparatively, 84.8% of Cadence Design Systems shares are owned by institutional investors. 0.1% of KLA shares are owned by company insiders. Comparatively, 2.0% of Cadence Design Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

KLA beats Cadence Design Systems on 9 of the 16 factors compared between the two stocks.