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Cadence Design Systems vs Fair Isaac: Which Stock Looks Stronger in 2026?

Fair Isaac holds the cleaner structural position, with the lead spread across profitability and growth. Cadence Design Systems does not offset that deficit through any equally strong structural edge elsewhere. The market setup is currently leaning toward Cadence Design Systems, which does not confirm the structural lead. That leaves a split case: the structural lead stays with Fair Isaac, but the market is not currently confirming it.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the S&P 500 universe, making them directly comparable.

Updated 2026-05-17

The lead is spread across profitability and growth, rather than sitting in one isolated gap. Fair Isaac Corporation leads by 32 points on the overall comparison score.

INDUSTRY COMPARISON

Both operate in: Software - Application

This comparison is based on industry proximity, not on functional trajectory similarity. CDNS and FICO share the same industry classification.

For a similarity-based comparison, see how Cadence Design Systems and Fair Isaac each position within their functional peer groups in AssetNext.

Peer-Relative Score
CDNS
Cadence Design Systems, Inc.
32
Peer-Score
Signal qualitylow
Peer basis: S&P 500
vs
FICO
Fair Isaac Corporation
64
Peer-Score
Signal qualitylow
Peer basis: S&P 500

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Score differences across key dimensions.

Dimension spread: CDNS vs FICO Profitability 27 74 Stability 42 33 Valuation 20 53 Growth 51 95 CDNS FICO
Gap Ranking
#1 Profitability +47
#2 Growth +44
#3 Valuation +33
#4 Stability +9
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for CDNS and FICO Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer CDNSFICO Relative valuation Structural strength

Fair Isaac Corporation looks stronger both structurally and on relative valuation.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Entry today — historical context

Where CDNS and FICO each sit in their own 5-year price and valuation history.

BASED ON 5-YEAR HISTORY CDNS Elevated · above norm 0th 50th 100th 43 pct gap FICO Neutral · below norm 0th 50th 100th 96th 53rd
Today FICO sits in the upper-middle of its own 5-year history (53rd percentile), while CDNS sits higher in its own history (96th). Within each stock's own 5-year context, FICO is at a historically more favourable entry position than CDNS. This reflects entry timing, not which company is structurally stronger — peer-relative analysis is a separate question addressed above.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Profitability
On profitability, Fair Isaac Corporation ranks near the top of the group; Cadence Design Systems, Inc. sits in the weaker half.
Growth
On growth, the same pattern holds: both are strong, but Fair Isaac Corporation still leads clearly.
Profitability — Dominant Gap
CDNS
27
FICO
74
Gap+47in favour of FICO

The profitability lead is mainly driven by a 28-point operating margin advantage.

What keeps the gap from being one-sided

Cadence Design Systems, Inc. still shows lower market-fundamental divergence, which keeps the wider picture mixed rather than completely one-sided.

What this means for the comparison

The lead is built on both profitability and growth, making it broader than a single-dimension result.

Explore full peer positioning in AssetNext

Break down the CDNS vs FICO comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Similar profitability-and-growth comparisons

Explore how CDNS and FICO each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.