Quick verdict: ADI vs CDNS in 2026

Analog Devices (ADI) holds an overall edge in this ADI vs CDNS stock comparison 2026, leading on 9 out of 12 comparable fundamental metrics, including superior revenue growth, stronger profitability margins (net and EBITDA), and more attractive valuation ratios. Cadence Design Systems (CDNS) stands out with a significantly higher gross margin, a higher buy rating percentage from analysts, and more favorable price target upside, suggesting greater near-term analyst confidence. While ADI appears to be the stronger fundamental play, CDNS offers a compelling analyst outlook for potential short-term gains. 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 2026-05-07.

ADI vs CDNS valuation comparison

When considering ADI vs CDNS fundamentals and valuation, both companies trade at premium multiples, reflecting their strong positions in the technology sector. Analog Devices (ADI) currently holds a P/E ratio of 75.07x, which is notably lower than Cadence Design Systems’ (CDNS) P/E of 82.46x. This suggests that ADI is comparatively less expensive on an earnings basis. Furthermore, ADI’s P/B ratio of 6.01x is significantly more attractive than CDNS’s 14.72x, indicating that ADI’s stock price is valued at a lower multiple of its book value.

However, a closer look at the discounted cash flow (DCF) models reveals a different perspective on their intrinsic value. The DCF for ADI is $207.5, implying a substantial downside of -50.1% from its current price of $415.63. CDNS also faces an implied overvaluation, with a DCF of $160.71 suggesting a -54.7% downside from its $354.9 price. While both models suggest significant overvaluation, ADI’s implied downside is marginally less severe, reinforcing its position as the relatively “cheaper” option in this high-growth, high-multiple environment. Investors should be aware that these DCF models often use specific growth and discount rate assumptions which may differ from their own.

ADI vs CDNS growth comparison

In terms of growth, Analog Devices (ADI) exhibits stronger year-over-year revenue momentum compared to Cadence Design Systems (CDNS). ADI reported revenue growth of +16.9%, surpassing CDNS’s +14.1% over the same period. This indicates that ADI is currently expanding its top line at a slightly faster pace, potentially driven by demand for its analog, mixed-signal, and digital signal processing products across diverse markets such as industrial, automotive, communications, and consumer electronics.

Beyond revenue growth, ADI also demonstrates superior operational efficiency, which contributes to its overall growth narrative. ADI’s EBITDA margin stands at an impressive 46.99%, significantly higher than CDNS’s 33.78%. This suggests that ADI is more effective at converting its revenue into core operating profit. Although CDNS boasts a higher gross margin (88.85% vs ADI’s 62.84%), ADI’s strength in net and EBITDA margins, combined with its higher revenue growth, indicates stronger overall business momentum.

ADI vs CDNS profitability

A deep dive into ADI vs CDNS profitability reveals that Analog Devices holds a distinct advantage in several key metrics. ADI’ boasts a net margin of 23.02%, which is higher than CDNS’s net margin of 21.18%. This indicates that ADI retains a larger portion of its revenue as profit after all expenses, including taxes, are accounted for. The difference, while seemingly small, can add up to significant figures given their multi-billion dollar revenues. Furthermore, ADI’s EBITDA margin of 46.99% dwarfs CDNS’s 33.78%, signifying superior operational efficiency before interest, taxes, depreciation, and amortization.

While both companies have an “N/A%” reported for Return on Equity (ROE) in the provided data, we can still assess their cash-generating capabilities through Free Cash Flow (FCF) yield. ADI offers a FCF yield of 2.25%, comfortably outperforming CDNS’s 1.46%. This implies that Analog Devices generates more free cash flow relative to its market capitalization, providing greater financial flexibility for reinvestment, debt repayment, or shareholder returns. Collectively, these profitability metrics suggest that ADI is the more efficient and cash-generative business.

Analyst ratings: ADI vs CDNS

The analyst consensus for ADI vs CDNS offers a nuanced perspective on market sentiment. Analog Devices (ADI) is covered by 54 analysts, with 79.6% issuing a “Buy” rating. Their consensus target price for ADI is $378.56, which implies a potential downside of -8.9% from its current price of $415.63. While the overall consensus remains “Buy,” the implied price target suggests that analysts believe the stock is currently trading above its fair value in the short term.

Cadence Design Systems (CDNS), while having a smaller analyst following of 31 analysts, boasts an even higher “Buy” rating percentage at 83.9%. More importantly, analysts see an upside potential for CDNS, with a consensus target price of $370.83, representing a +4.5% increase from its current price of $354.9. This positive price target upside for CDNS, coupled with a higher buy rating percentage, indicates a stronger immediate conviction among analysts regarding its near-term stock performance.

Should I buy ADI or CDNS stock in 2026?

When considering should I buy ADI or CDNS stock in 2026, growth investors might lean towards Analog Devices. ADI’s reported revenue growth of 16.9% year-over-year slightly outpaces CDNS’s 14.1%, indicating stronger top-line expansion. Additionally, ADI’s superior EBITDA margin of 46.99% versus CDNS’s 33.78% suggests better operational leverage and efficiency in scaling its business. For investors prioritizing companies with robust and accelerating revenue streams alongside efficient operations, ADI presents a compelling case for growth.

For value-oriented investors, ADI appears to be the more attractive option in this ADI vs CDNS fundamentals and valuation comparison. ADI’s P/E ratio of 75.07x is lower than CDNS’s 82.46x, and its P/B ratio of 6.01x is significantly more favorable compared to CDNS’s 14.72x. While both stocks trade at high valuations, ADI offers a relatively less expensive entry point based on these common multiples. Furthermore, the DCF analysis, while indicating overvaluation for both, suggests a slightly less severe implied downside for ADI at -50.1% versus CDNS’s -54.7%, adding another point in ADI’s favor for those seeking comparative value.

For income-focused investors, neither ADI nor CDNS stands out as a strong dividend play. Analog Devices offers a very modest dividend yield of 0.01%, providing a token return to shareholders. In contrast, Cadence Design Systems does not currently offer a dividend, with a yield of 0%. Therefore, for investors whose primary objective is generating regular income from their stock holdings, neither of these technology giants would be an ideal choice. This is not investment advice; please conduct your own due diligence.

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