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CDNS vs FFIV
Which Stock Would AI Choose? Cadence Design Systems (CDNS) vs. F5 (FFIV) Stock Comparison
Key Takeaways
- Cadence Design Systems (CDNS) has benefited from robust demand in electronic design automation (EDA) software amid the AI chip boom, with recent quarterly earnings exceeding expectations and guidance raised.
- F5 (FFIV) demonstrated strong product revenue growth of 22% in recent quarters, driven by multi-cloud application security needs and AI integrations, leading to upgraded full-year outlook.
- FFIV shows superior year-to-date (YTD) performance at around 27%, outpacing CDNS's 9%, reflecting momentum in networking solutions.
- Valuation contrasts highlight FFIV's lower price-to-earnings (PE) ratio of approximately 27 versus CDNS's 79, suggesting relative affordability despite both benefiting from AI trends.
- Both stocks exhibit positive analyst sentiment, with price target upgrades following recent earnings beats, but CDNS commands a larger market cap of $94 billion compared to FFIV's $18 billion.
Introduction
This stock comparison examines Cadence Design Systems (CDNS) and F5 (FFIV), two technology firms capitalizing on artificial intelligence (AI) and cloud computing demands. CDNS specializes in EDA tools essential for semiconductor design, while FFIV focuses on application delivery and security in multi-cloud environments. Traders seeking exposure to AI infrastructure growth and investors evaluating relative performance in recent market activity will find value in analyzing their business models, momentum, and valuations. Amid broader sector tailwinds, understanding these contrasts aids informed portfolio decisions in a dynamic tech landscape.
CDNS Overview and Recent Performance
Cadence Design Systems (CDNS) is a leading provider of EDA software, hardware, and intellectual property for designing complex integrated circuits (ICs), particularly those powering AI applications. Its solutions enable functional verification, digital IC design, and system-level optimization, serving semiconductor giants amid surging chip demand.
In recent market activity, CDNS stock has gained traction, with shares rising approximately 18% over the past month following a first-quarter earnings beat. Revenue reached $1.47 billion, surpassing estimates, while earnings per share (EPS) hit $1.96 against expectations of $1.89. The company raised its full-year revenue outlook, citing AI-driven demand and strategic partnerships like those with NVIDIA. Positive analyst revisions, including buy ratings and higher price targets up to $400, reflect sentiment shifts toward sustained growth in AI capital expenditures, though high valuations temper some enthusiasm.
FFIV Overview and Recent Performance
F5 (FFIV), formerly F5 Networks, delivers multi-cloud application security, delivery, and performance optimization solutions. Its platforms secure and accelerate applications across hybrid environments, addressing rising needs for AI workloads, edge computing, and cybersecurity.
Recent weeks have seen FFIV shares surge post-earnings, climbing over 5% in a single session after second-quarter results. Revenue totaled $812 million with adjusted EPS of $3.90, beating forecasts, fueled by 22% product revenue growth and record cash flow. The firm upgraded its fiscal 2026 revenue guidance to 7-8% growth and added an AI-focused board member. Analyst upgrades, such as overweight ratings with targets to $365, underscore improving sentiment, though competitive pressures in networking persist. YTD gains of 27% highlight stronger momentum relative to broader indices.
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Head-to-Head Comparison
CDNS and FFIV both leverage AI tailwinds but diverge in business models: CDNS anchors semiconductor design enablement, while FFIV targets application-layer security and delivery. Growth drivers include AI chip complexity for CDNS and multi-cloud/AI traffic management for FFIV, with recent product accelerations contrasting CDNS's steady EDA subscription revenue.
Momentum favors FFIV with 27% YTD gains versus CDNS's 9%, though CDNS edges one-year returns. Risk profiles show FFIV's lower beta implying stability, but CDNS offers broader sector exposure to hyperscale AI capex. Valuations trade off with FFIV's attractive PE of 27 against CDNS's premium 79, amid shared positive sentiment from earnings beats.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward FFIV based on stronger recent momentum, superior YTD relative performance, and more favorable valuation metrics amid consistent earnings beats and guidance upgrades. While CDNS maintains trend consistency in core AI chip design, FFIV's positioning offers higher probability of near-term outperformance in cloud security growth, subject to market dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CDNS is a StrongBuy and FFIV is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CDNS’s FA Score shows that 2 FA rating(s) are green whileFFIV’s FA Score has 2 green FA rating(s).
- CDNS’s FA Score: 2 green, 3 red.
- FFIV’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CDNS’s TA Score shows that 5 TA indicator(s) are bullish while FFIV’s TA Score has 3 bullish TA indicator(s).
- CDNS’s TA Score: 5 bullish, 4 bearish.
- FFIV’s TA Score: 3 bullish, 4 bearish.
Price Growth
CDNS (@Packaged Software) experienced а +2.33% price change this week, while FFIV (@Computer Communications) price change was +0.71% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -1.21%. For the same industry, the average monthly price growth was +2.73%, and the average quarterly price growth was -4.18%.
The average weekly price growth across all stocks in the @Computer Communications industry was +9.40%. For the same industry, the average monthly price growth was +10.41%, and the average quarterly price growth was +33.59%.
Reported Earning Dates
CDNS is expected to report earnings on Jul 27, 2026.
FFIV is expected to report earnings on Aug 03, 2026.
Industries' Descriptions
@Packaged Software (-1.21% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
@Computer Communications (+9.40% weekly)Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.
| CDNS | FFIV | CDNS / FFIV | |
| Capitalization | 109B | 22.4B | 487% |
| EBITDA | 1.98B | 905M | 219% |
| Gain YTD | 23.156 | 55.199 | 42% |
| P/E Ratio | 91.96 | 32.53 | 283% |
| Revenue | 5.53B | 3.23B | 171% |
| Total Cash | 1.41B | 1.44B | 98% |
| Total Debt | 3.08B | 260M | 1,186% |
CDNS | FFIV | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 75 | 93 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 55 Fair valued | |
PROFIT vs RISK RATING 1..100 | 17 | 27 | |
SMR RATING 1..100 | 45 | 46 | |
PRICE GROWTH RATING 1..100 | 15 | 8 | |
P/E GROWTH RATING 1..100 | 37 | 35 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
FFIV's Valuation (55) in the Computer Communications industry is somewhat better than the same rating for CDNS (89) in the Electronic Production Equipment industry. This means that FFIV’s stock grew somewhat faster than CDNS’s over the last 12 months.
CDNS's Profit vs Risk Rating (17) in the Electronic Production Equipment industry is in the same range as FFIV (27) in the Computer Communications industry. This means that CDNS’s stock grew similarly to FFIV’s over the last 12 months.
CDNS's SMR Rating (45) in the Electronic Production Equipment industry is in the same range as FFIV (46) in the Computer Communications industry. This means that CDNS’s stock grew similarly to FFIV’s over the last 12 months.
FFIV's Price Growth Rating (8) in the Computer Communications industry is in the same range as CDNS (15) in the Electronic Production Equipment industry. This means that FFIV’s stock grew similarly to CDNS’s over the last 12 months.
FFIV's P/E Growth Rating (35) in the Computer Communications industry is in the same range as CDNS (37) in the Electronic Production Equipment industry. This means that FFIV’s stock grew similarly to CDNS’s over the last 12 months.
| CDNS | FFIV | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 54% | 4 days ago 38% |
| Stochastic ODDS (%) | 4 days ago 77% | 4 days ago 42% |
| Momentum ODDS (%) | 4 days ago 67% | 4 days ago 70% |
| MACD ODDS (%) | 4 days ago 67% | 4 days ago 41% |
| TrendWeek ODDS (%) | 4 days ago 71% | 4 days ago 67% |
| TrendMonth ODDS (%) | 4 days ago 68% | 4 days ago 69% |
| Advances ODDS (%) | 14 days ago 70% | 4 days ago 65% |
| Declines ODDS (%) | 5 days ago 62% | 6 days ago 52% |
| BollingerBands ODDS (%) | 4 days ago 64% | N/A |
| Aroon ODDS (%) | 4 days ago 60% | 4 days ago 70% |
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FFIV and
Correlation & Price change
A.I.dvisor indicates that over the last year, FFIV has been loosely correlated with SHOP. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if FFIV jumps, then SHOP could also see price increases.
| Ticker / NAME | Correlation To FFIV | 1D Price Change % | ||
|---|---|---|---|---|
| FFIV | 100% | +0.59% | ||
| SHOP - FFIV | 58% Loosely correlated | -2.02% | ||
| ADSK - FFIV | 56% Loosely correlated | -3.47% | ||
| CDNS - FFIV | 56% Loosely correlated | +0.32% | ||
| CVLT - FFIV | 54% Loosely correlated | +0.73% | ||
| CRM - FFIV | 53% Loosely correlated | -0.34% | ||
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