Verint Systems (NASDAQ:VRNT) & Cadence Design Systems (NASDAQ:CDNS) Head-To-Head Contrast

Verint Systems (NASDAQ:VRNT) and Cadence Design Systems (NASDAQ:CDNS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Verint Systems and Cadence Design Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verint Systems	1	6	1	0	2.00
Cadence Design Systems	0	4	15	0	2.79

Verint Systems presently has a consensus target price of $24.80, indicating a potential upside of 20.92%. Cadence Design Systems has a consensus target price of $379.11, indicating a potential upside of 21.11%. Given Cadence Design Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Cadence Design Systems is more favorable than Verint Systems.

Earnings and Valuation

This table compares Verint Systems and Cadence Design Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verint Systems	$893.84 million	1.39	$82.27 million	$0.71	28.89
Cadence Design Systems	$4.64 billion	18.36	$1.06 billion	$3.88	80.68

Cadence Design Systems has higher revenue and earnings than Verint Systems. Verint Systems is trading at a lower price-to-earnings ratio than Cadence Design Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Verint Systems and Cadence Design Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verint Systems	6.87%	11.06%	4.37%
Cadence Design Systems	20.35%	30.13%	15.97%

Insider & Institutional Ownership

94.9% of Verint Systems shares are owned by institutional investors. Comparatively, 84.9% of Cadence Design Systems shares are owned by institutional investors. 1.3% of Verint Systems shares are owned by insiders. Comparatively, 2.0% of Cadence Design Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Verint Systems has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Summary

Cadence Design Systems beats Verint Systems on 12 of the 14 factors compared between the two stocks.

About Verint Systems

Verint Systems Inc. provides customer engagement solutions worldwide. It offers forecasting and scheduling, channels and routing, knowledge management, fraud and security solutions, quality and compliance, analytics and insights, real-time assistance, self-services, financial compliance, and voice pf the consumer solutions. The company provides Verint Open platform designed to help brands increase CX automation across all touchpoints between organization and customers in the contact center, back office, branch, web sites, and mobile apps. It serves banking, insurance, public, retail, and telecommunication industries. Verint Systems Inc. was incorporated in 1994 and is headquartered in Melville, New York.

About Cadence Design Systems

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus synthesis and Joules RTL power solutions, as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and Innovus implementation system, a physical implementation system. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science industries. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.