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How Does Cadence Design Compare to Its Peers?

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Oct. 27 2015, Published 6:36 p.m. ET

Cadence Design and its peers

Now let’s look at a comparison of Cadence Design (CDNS) against its peers.

  • The PE (price-to-earnings) ratios of Cadence, ARM Holdings (ARMH), Ansys (ANSS), Synopsys (SNPS), and Mentor Graphics (MENT) are 33.89x, 46.48x, 34.56x, 33.04x, and 20.26x, respectively.
  • The PBV (price-to-book value) ratios of Cadence, ARM, Ansys, Synopsys, and Mentor Graphics are 4.36x, 8.68x, 3.78x, 2.47x, and 2.40x, respectively.

  • The PS (price-to-sales) ratios of Cadence, ARM, Ansys, Synopsys, and Mentor Graphics are 3.77x, 16.10x, 9.03x, 3.55x, and 2.44x, respectively.

Thus, Cadence has outperformed its peers based on PBV.

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ETFs that invest in Cadence Design Systems

The PowerShares DWA Technology Momentum ETF (PTF) invests 2.6% of its holdings in Cadence. The ETF tracks an index of US technology companies selected and weighted by price momentum.

The PowerShares Dynamic Software ETF (PSJ) invests 2.5% of its holdings in Cadence. The ETF uses a quantitative model to choose US software companies across the market capitalization spectrum.

The Guggenheim S&P MidCap 400 Pure Growth ETF (RFG) invests 2.0% of its holdings in Cadence. The ETF tracks a factor-weighted index of the S&P 400 companies exhibiting the strongest growth factors.

Cadence Design and its ETFs compared

Now let’s look at a comparison of Cadence Design and its ETFs:

  • The year-to-date price movements of Cadence, PTF, PSJ, and RFG are 12.6%, 7.5%, 9.1%, and 5.7%, respectively.
  • The PE (price-to-earnings) ratios of Cadence, PTF, PSJ, and RFG are 33.89x, 67.33x, 27.15x, and 22.64x, respectively.
  • The PBV (price-to-book value) ratios of Cadence, PTF, PSJ, and RFG are 4.36x, 7.05x, 4.27x, and 3.58x, respectively.

Thus, Cadence has outperformed its ETFs based on price movement, PE, and PBV.

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