CSCO vs. IBM, ANET, TMUS, QCOM, SAP, ADBE, INTU, VZ, AMAT, and NOW
Should you be buying Cisco Systems stock or one of its competitors? The main competitors of Cisco Systems include International Business Machines (IBM), Arista Networks (ANET), T-Mobile US (TMUS), QUALCOMM (QCOM), SAP (SAP), Adobe (ADBE), Intuit (INTU), Verizon Communications (VZ), Applied Materials (AMAT), and ServiceNow (NOW). These companies are all part of the "computer and technology" sector.
International Business Machines (NYSE:IBM) and Cisco Systems (NASDAQ:CSCO) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, media sentiment, community ranking, earnings and institutional ownership.
Cisco Systems received 1304 more outperform votes than International Business Machines when rated by MarketBeat users. Likewise, 73.39% of users gave Cisco Systems an outperform vote while only 58.70% of users gave International Business Machines an outperform vote.
Cisco Systems has lower revenue, but higher earnings than International Business Machines. Cisco Systems is trading at a lower price-to-earnings ratio than International Business Machines, indicating that it is currently the more affordable of the two stocks.
59.0% of International Business Machines shares are held by institutional investors. Comparatively, 73.3% of Cisco Systems shares are held by institutional investors. 0.1% of International Business Machines shares are held by company insiders. Comparatively, 0.0% of Cisco Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Cisco Systems has a net margin of 23.49% compared to Cisco Systems' net margin of 13.18%. Cisco Systems' return on equity of 40.21% beat International Business Machines' return on equity.
International Business Machines has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Cisco Systems has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
In the previous week, International Business Machines had 84 more articles in the media than Cisco Systems. MarketBeat recorded 106 mentions for International Business Machines and 22 mentions for Cisco Systems. International Business Machines' average media sentiment score of 0.49 beat Cisco Systems' score of 0.26 indicating that Cisco Systems is being referred to more favorably in the news media.
International Business Machines presently has a consensus price target of $184.08, suggesting a potential upside of 10.14%. Cisco Systems has a consensus price target of $55.53, suggesting a potential upside of 16.02%. Given International Business Machines' higher probable upside, analysts clearly believe Cisco Systems is more favorable than International Business Machines.
International Business Machines pays an annual dividend of $6.64 per share and has a dividend yield of 4.0%. Cisco Systems pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. International Business Machines pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cisco Systems pays out 48.6% of its earnings in the form of a dividend. International Business Machines has raised its dividend for 28 consecutive years and Cisco Systems has raised its dividend for 13 consecutive years. International Business Machines is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Cisco Systems beats International Business Machines on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CSCO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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