Cognizant screens cheaper on all three valuation measures, while Cadence reports higher return on equity. The difference is notable, but valuation ratios alone don’t show which business is the better fit.
Cadence Design Systems Inc (CDNS) and Cognizant Technology Solutions Corp Class A (CTSH) are both in the Information Technology Software & Services industry group, but their valuation multiples differ sharply. At the latest adjusted close on 2026-11-03, Cadence traded at US$323.75, with a market cap of US$88.8B. Cognizant traded at US$63.83, with a market cap of US$28.5B. Cognizant has the lower P/E, PEG and P/B in this snapshot. That shows how the figures compare, but it doesn’t prove Cognizant is undervalued or Cadence is overpriced.
Investor takeaway: Cognizant has the lower multiples in this snapshot: a P/E of 11.6 versus 65.5 for Cadence, a PEG of 0.95 versus 2.43, and a P/B of 1.94 versus 12.92. Cadence reports higher TTM ROE, at 22.9% compared with Cognizant’s 17.4%. These figures provide context, but they don’t capture the companies’ growth prospects, risks or potential returns. For more information, see the Cadence stock page and Cognizant stock page.
Stocks in this list
Live snapshots — open any name for the full quote and Wealth Awesome price forecast.
Cadence Design Systems Inc
CDNS.US
Information Technology
$323.75
$88.83B
1D
-1.75%
1W
-5.63%
Cognizant Technology Solutions Corp Class A
CTSH.US
Information Technology
$63.83
$28.53B
1D
-1.94%
1W
-3.61%
Cognizant has the lower multiple on all three measures
CTSH’s P/E of 11.6, PEG of 0.95 and P/B of 1.94 are all below CDNS’s figures of 65.5, 2.43 and 12.92. This shows which stock has lower multiples in the supplied data. It doesn’t establish fair value or predict future performance.
Bull case
Cognizant’s lower P/E, PEG and P/B may appeal to investors looking for a stock with lower valuation multiples. The snapshot also shows a 2.03% dividend yield. These figures don’t prove the shares are undervalued or that the yield will continue.
Bear case
Cognizant’s TTM ROE is lower than Cadence’s. The snapshot doesn’t explain what drives either company’s valuation or profitability, and a low multiple alone doesn’t mean a stock is a bargain.
The valuation snapshot
| Measure | Cadence (CDNS) | Cognizant (CTSH) |
|---|---|---|
| Adjusted close (2026-11-03) | US$323.75 | US$63.83 |
| Market cap | US$88.8B | US$28.5B |
| P/E | 65.5 | 11.6 |
| PEG | 2.43 | 0.95 |
| P/B | 12.92 | 1.94 |
Cognizant has the lower figure on all three valuation measures. The share prices and market caps show that the companies differ in size, but they don’t explain the gap between their multiples.
Profitability, yield and analyst labels
Cadence’s TTM ROE is 22.9%, compared with 17.4% for Cognizant. The snapshot lists dividend yields of 0.00% for Cadence and 2.03% for Cognizant. These figures add to the comparison, but they don’t provide a complete picture of business quality or future income. The supplied analyst consensus labels are Strong Buy for Cadence and Buy for Cognizant, with price targets of US$411.76 and US$69.50, respectively. These are snapshot figures, not guarantees of future share prices.
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