Cadence Design Systems (NASDAQ: CDNS) and Nice (NASDAQ:NICE) are both mid-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Volatility & Risk
Cadence Design Systems has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Nice has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
This table compares Cadence Design Systems and Nice’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cadence Design Systems||13.45%||29.00%||11.60%|
Earnings and Valuation
This table compares Cadence Design Systems and Nice’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cadence Design Systems||$1.82 billion||6.67||$203.08 million||$0.92||46.63|
|Nice||$1.02 billion||5.24||$116.92 million||$1.46||60.65|
Cadence Design Systems has higher revenue and earnings than Nice. Cadence Design Systems is trading at a lower price-to-earnings ratio than Nice, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Cadence Design Systems and Nice, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cadence Design Systems||1||3||3||0||2.29|
Cadence Design Systems presently has a consensus price target of $38.75, suggesting a potential downside of 9.67%. Nice has a consensus price target of $83.50, suggesting a potential downside of 5.70%. Given Nice’s higher possible upside, analysts clearly believe Nice is more favorable than Cadence Design Systems.
Institutional & Insider Ownership
84.8% of Cadence Design Systems shares are owned by institutional investors. Comparatively, 45.1% of Nice shares are owned by institutional investors. 2.6% of Cadence Design Systems shares are owned by company insiders. Comparatively, 0.0% of Nice shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Nice pays an annual dividend of $0.13 per share and has a dividend yield of 0.1%. Cadence Design Systems does not pay a dividend. Nice pays out 8.9% of its earnings in the form of a dividend.
Cadence Design Systems beats Nice on 13 of the 16 factors compared between the two stocks.
About Cadence Design Systems
Cadence Design Systems, Inc. provides solutions that enable its customers to design electronic products. The Company’s product categories include Functional Verification, Digital integrated circuits (IC) Design and Signoff, Custom IC Design and Verification, System Interconnect and Analysis, and intellectual property (IP). Functional verification products are used to verify that the circuitry or the software designed will perform as intended. Digital IC design offerings are used to create representations of a digital circuit or an IC that can be verified for correctness prior to implementation. Custom IC design and verification offerings are used to create schematic and physical representations of circuits down to the transistor level for analog and memory designs. System Interconnect and Analysis offerings are used to develop printed circuit boards and IC packages. Design IP offerings consist of functional blocks, which customers integrate into their ICs for the development process.
NICE Ltd., formerly NICE-Systems Ltd., is a global enterprise software provider. The Company’s segments include Customer Interactions Solutions, and Financial Crime and Compliance Solutions. The Customer Interactions Solutions segment provides data driven insights that enable businesses to deliver personalized experience to customers. The Financial Crime and Compliance Solutions segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance and enterprise-wide case management. The Company serves contact centers, back office operations and retail branches, covering various industries, including communications, banking, insurance, healthcare, business processes outsourcing (BPO), government, utilities, travel and entertainment. Its Multi-Channel Recording and Interaction Management enables organizations to capture structured and unstructured customer interaction and transaction data from multiple channels.
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