InvestMoat

Cadence vs Synopsys

Synopsys is growing faster. So why does Cadence win?

Cadence wins, 80 to 75, on valuation.

Synopsys wins on growth, but Cadence's lead on valuation counts for more.

CDNS · Semiconductors

Cadence Design Systems

…

AccumulateFull analysis

SNPS · Semiconductors

Synopsys, Inc.

…

AccumulateFull analysis

CDNS

SNPS

Composite
80
(higher)
75
Moat
80
80
Growth
75
77
(higher)
Valuation
79
(higher)
66

CDNS

SNPS

Bear
$270
$320
Base
$390
$470
Bull
$500
$600
Upside to base
—
—

CDNS

SNPS

Revenue CAGR, 3–5 yr
15–18%
10–15%

CDNS

SNPS

Proprietary Data
Intact
Intact
Regulatory Lock-In
N/A
N/A
Network Effects
Strong
Strong
Transaction Embedding
Strong
Strong
System of Record
Intact
Intact
Scale Economics
N/A
N/A
Brand & Pricing Power
N/A
N/A

CDNS

SNPS

Learned Interfaces
N/A
N/A
Business Logic
Intact
Intact
Public Data Access
N/A
N/A
Talent Scarcity
Strong
Strong
Bundling
Intact
Intact

Shaded cells mark the higher score or stronger moat on each row. Valuation and composite use the live price when it is available, the same as each stock page.

Which is the better stock, Cadence or Synopsys?

Cadence wins, 80 to 75, on valuation. Synopsys wins on growth, but Cadence's lead on valuation counts for more. Our rating: Cadence Accumulate, Synopsys Accumulate.

Does Cadence or Synopsys have the wider moat?

Both score 80 on moat. Both are rated strong on network effects, transaction embedding and talent scarcity.

Which is growing faster, Cadence or Synopsys?

Synopsys scores 77 on growth to Cadence's 75. We expect Cadence to grow 15–18% a year, Synopsys 10–15%.

Is Cadence or Synopsys cheaper right now?

Cadence scores 79 on valuation to Synopsys's 66. In our base case, Cadence has more upside: +21% vs +1%.

Scores in the answers use the price each valuation was last struck at; the table above updates with the live price. Not investment advice.