Quick verdict: ADI vs CDNS in 2026

In this **adi vs cdns stock comparison 2026**, Analog Devices (ADI) appears to hold a significant edge across many fundamental metrics, winning on 9 out of 11 comparable categories in our scorecard. ADI emerges as the growth leader, boasting a higher revenue growth rate, and also stands out as the value leader, presenting more attractive P/E and P/B ratios. Furthermore, ADI demonstrates superior margin performance, showcasing stronger profitability. Conversely, Cadence Design Systems (CDNS) is the analyst favorite, with a higher percentage of ‘Buy’ ratings and substantially more projected upside according to consensus price targets. This is not investment advice.

ADI vs CDNS: key metrics side by side

Full side-by-side comparison of ADI and CDNS across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-14.

ADI vs CDNS valuation comparison

When examining the **adi vs cdns valuation 2026**, Analog Devices (ADI) appears to offer a more compelling entry point compared to Cadence Design Systems (CDNS). ADI trades at a P/E ratio of 62.99x, which is notably lower than CDNS’s 71.64x. Similarly, ADI’s P/B ratio stands at 5.05x, significantly more attractive than CDNS’s 14.51x. These lower multiples for ADI suggest that the market is assigning a relatively less premium valuation to its earnings and book value, making it potentially more appealing for value-conscious investors.

Further analyzing the **adi vs cdns fundamentals and valuation**, the Discounted Cash Flow (DCF) models indicate that both stocks are currently trading above their estimated fair value. ADI’s current price is -29.9% relative to its DCF fair value of $244.38, meaning it’s trading at a premium. However, CDNS exhibits an even larger disparity, with its current price -39.1% above its DCF fair value of $178.5. While both companies are considered overvalued by this metric, ADI is less severely so, reinforcing its position as the relatively cheaper option from a fundamental valuation perspective.

ADI vs CDNS growth comparison

In terms of top-line expansion, Analog Devices (ADI) demonstrates slightly stronger momentum in this **adi vs cdns stock comparison 2026**. ADI reported a year-over-year revenue growth of 16.9%, outperforming Cadence Design Systems (CDNS), which saw its revenue grow by 14.1%. This difference, while modest, indicates ADI’s current ability to capture a larger share of market growth or to expand its sales more aggressively within its operational segments. This higher growth rate can be a significant factor for investors prioritizing companies with robust revenue expansion.

Looking at the broader implications for **adi vs cdns earnings growth comparison**, ADI’s superior revenue growth, coupled with its strong net and EBITDA margins, suggests a healthy operational environment that could translate into stronger earnings momentum. While both companies operate in a high-growth technology sector, ADI’s slightly faster top-line growth could provide a foundation for continued market share gains and potentially more significant future earnings power. This is a critical consideration for investors evaluating which stock possesses stronger intrinsic growth characteristics going forward.

ADI vs CDNS profitability

When it comes to profitability, Analog Devices (ADI) demonstrates a clear advantage over Cadence Design Systems (CDNS). ADI boasts a net margin of 23.02%, which is higher than CDNS’s 20.94%. The difference is even more pronounced in their operational efficiency, with ADI reporting an impressive EBITDA margin of 46.99%, significantly higher than CDNS’s 35.35%. These figures indicate that ADI is more effective at converting its revenue into profit, both before and after accounting for non-operating expenses and taxes, showcasing superior cost management and operational leverage.

To assess which generates more cash, we look at Free Cash Flow (FCF) yield. ADI’s FCF yield stands at 2.68%, outperforming CDNS’s 1.96%. A higher FCF yield suggests that ADI generates more cash relative to its market capitalization, providing greater flexibility for reinvestment, debt reduction, or shareholder returns. While both companies show N/A% for Return on Equity (ROE), ADI’s stronger net and EBITDA margins, combined with its higher FCF yield, clearly position it as the more profitable and cash-generative entity in this **adi vs cdns profitability comparison**.

Analyst ratings: ADI vs CDNS

Analyst sentiment, a crucial component of the **adi vs cdns analyst ratings and recommendations**, shows a nuanced preference between these two tech giants. Analog Devices (ADI) is covered by 54 analysts, with 79.6% recommending a ‘Buy’ rating. Their consensus price target for ADI is $374.42, which implies a modest upside of +7.4% from its current price. This indicates a generally positive but somewhat conservative outlook from the analyst community regarding ADI’s near-term price appreciation.

In contrast, Cadence Design Systems (CDNS), covered by 30 analysts, has an even higher percentage of ‘Buy’ ratings at 83.3%. The consensus price target for CDNS is $374.71, suggesting a substantial upside of +27.8%. Despite ADI’s stronger fundamental metrics, analysts appear to see considerably more growth potential and price appreciation for CDNS. This could be attributed to anticipated future market developments, new product cycles, or an expectation of accelerated growth for CDNS that the market has not yet fully priced in.

Should I buy ADI or CDNS stock in 2026?

For growth-oriented investors asking **should i buy adi or cdns stock 2026**, the choice depends on whether you prioritize current momentum or future potential. Analog Devices (ADI) currently exhibits a slightly higher revenue growth rate of 16.9% year-over-year and stronger profitability metrics, indicating robust operational performance. However, Cadence Design Systems (CDNS) stands out with a significantly higher analyst price target upside of +27.8%, suggesting that market experts foresee greater future growth catalysts and price appreciation for CDNS.

Value investors, when considering the **adi vs cdns fundamentals and valuation**, will likely find ADI to be the more attractive option. ADI trades at a lower P/E ratio of 62.99x compared to CDNS’s 71.64x, and its P/B ratio of 5.05x is substantially lower than CDNS’s 14.51x. Furthermore, while both stocks are indicated as overvalued by their DCF models, ADI shows a smaller divergence from its fair value (-29.9% vs -39.1%). This implies ADI could offer a relatively better entry point from a valuation standpoint, presenting a more favorable risk-reward balance for those focused on price relative to intrinsic value.

For income-focused investors, neither ADI nor CDNS stands out as a strong dividend play. Analog Devices (ADI) offers a minimal dividend yield of 0.01%, which is negligible for income generation. Cadence Design Systems (CDNS) currently does not offer any dividend, with a 0% yield. Therefore, if your investment strategy primarily involves seeking consistent dividend income, both ADI and CDNS would be unsuitable choices, as their primary appeal lies in capital appreciation and growth rather than shareholder distributions. This is not investment advice; always conduct your own thorough research.

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FAQ: ADI vs CDNS