CSCO vs. IBM, ANET, TMUS, QCOM, INTU, ADBE, SAP, VZ, AMAT, and TXN
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), Intuit (INTU), Adobe (ADBE), SAP (SAP), Verizon Communications (VZ), Applied Materials (AMAT), and Texas Instruments (TXN). These companies are all part of the "computer and technology" sector.
Cisco Systems (NASDAQ:CSCO) and International Business Machines (NYSE:IBM) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations, community ranking, media sentiment and institutional ownership.
Cisco Systems has higher earnings, but lower revenue 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.
Cisco Systems has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, International Business Machines has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Cisco Systems presently has a consensus target price of $55.53, suggesting a potential upside of 17.44%. International Business Machines has a consensus target price of $181.29, suggesting a potential upside of 7.67%. Given Cisco Systems' stronger consensus rating and higher possible upside, equities research analysts plainly believe Cisco Systems is more favorable than International Business Machines.
In the previous week, International Business Machines had 27 more articles in the media than Cisco Systems. MarketBeat recorded 50 mentions for International Business Machines and 23 mentions for Cisco Systems. Cisco Systems' average media sentiment score of 0.60 beat International Business Machines' score of 0.28 indicating that Cisco Systems is being referred to more favorably in the media.
73.3% of Cisco Systems shares are held by institutional investors. Comparatively, 59.0% of International Business Machines shares are held by institutional investors. 0.0% of Cisco Systems shares are held by company insiders. Comparatively, 0.1% of International Business Machines shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Cisco Systems has a net margin of 23.49% compared to International Business Machines' net margin of 13.18%. International Business Machines' return on equity of 40.21% beat Cisco Systems' return on equity.
Cisco Systems pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. International Business Machines pays an annual dividend of $6.64 per share and has a dividend yield of 3.9%. Cisco Systems pays out 48.6% of its earnings in the form of a dividend. 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 received 1305 more outperform votes than International Business Machines when rated by MarketBeat users. Likewise, 73.40% of users gave Cisco Systems an outperform vote while only 58.63% of users gave International Business Machines an outperform vote.
Summary
Cisco Systems beats International Business Machines on 13 of the 20 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.
This 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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