Cadence Design Systems vs Oracle: Which Stock Could Rally?
Cadence Design Systems surged 20% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Oracle gives you more. Oracle (ORCL) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Cadence Design Systems (CDNS) stock, suggesting you may be better off investing in ORCL
- ORCL’s quarterly revenue growth was 21.7%, vs. CDNS’s 6.2%.
- In addition, its Last 12 Months revenue growth came in at 14.9%, ahead of CDNS’s 14.1%.
- ORCL leads on profitability over both periods – LTM margin of 32.3% and 3-year average of 31.2%.
These differences become even clearer when you look at the financials side by side. The table highlights how CDNS’s fundamentals stack up against those of ORCL on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CDNS | ORCL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 53.4 | 23.1 | ORCL |
| Revenue Growth | |||
| Last Quarter | 6.2% | 21.7% | ORCL |
| Last 12 Months | 14.1% | 14.9% | ORCL |
| Last 3 Year Average | 14.1% | 10.2% | CDNS |
| Operating Margins | |||
| Last 12 Months | 31.1% | 32.3% | ORCL |
| Last 3 Year Average | 30.6% | 31.2% | ORCL |
| Momentum | |||
| Last 3 Year Return | 55.3% | 81.5% | ORCL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See detailed fundamentals on Buy or Sell ORCL Stock and Buy or Sell CDNS Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CDNS Return | 37% | -14% | 70% | 10% | 4% | 8% | 147% | ||
| ORCL Return | 37% | -5% | 31% | 60% | 18% | -11% | 188% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 5% | 91% | ||
| Monthly Win Rates [3] | |||||||||
| CDNS Win Rate | 58% | 33% | 67% | 75% | 50% | 50% | 56% | ||
| ORCL Win Rate | 58% | 33% | 58% | 58% | 50% | 50% | 51% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| CDNS Max Drawdown | -12% | -28% | -2% | -9% | -23% | -15% | -15% | ||
| ORCL Max Drawdown | -6% | -29% | 0% | -3% | -26% | -30% | -16% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 4/28/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
Still not sure about CDNS or ORCL? Consider portfolio approach.
Smart Investing Begins With Portfolios
Stocks can jump or crash, but long-term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.