Cisco Systems (CSCO) Competitors

Broadcom (NASDAQ:AVGO) and Cisco Systems (NASDAQ:CSCO) are both large-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, media sentiment, analyst recommendations and risk.

Do analysts prefer AVGO or CSCO?

Broadcom presently has a consensus price target of $298.67, indicating a potential downside of 0.43%. Cisco Systems has a consensus price target of $74.53, indicating a potential upside of 10.17%. Given Cisco Systems' higher probable upside, analysts plainly believe Cisco Systems is more favorable than Broadcom.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadcom	0 Sell rating(s)	1 Hold rating(s)	26 Buy rating(s)	3 Strong Buy rating(s)	3.07
Cisco Systems	0 Sell rating(s)	10 Hold rating(s)	13 Buy rating(s)	1 Strong Buy rating(s)	2.63

Is AVGO or CSCO more profitable?

Broadcom has a net margin of 22.64% compared to Cisco Systems' net margin of 18.45%. Broadcom's return on equity of 35.49% beat Cisco Systems' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Broadcom	22.64%	35.49%	14.58%
Cisco Systems	18.45%	27.02%	10.20%

Which has better valuation & earnings, AVGO or CSCO?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadcom	$51.57B	27.36	$5.90B	$2.67	112.34
Cisco Systems	$56.65B	4.73	$10.45B	$2.62	25.82

Is AVGO or CSCO a better dividend stock?

Broadcom pays an annual dividend of $2.36 per share and has a dividend yield of 0.8%. Cisco Systems pays an annual dividend of $1.64 per share and has a dividend yield of 2.4%. Broadcom pays out 88.4% 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 62.6% of its earnings in the form of a dividend. Broadcom has raised its dividend for 15 consecutive years and Cisco Systems has raised its dividend for 13 consecutive years. Cisco Systems is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more volatility and risk, AVGO or CSCO?

Broadcom has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Cisco Systems has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Does the media prefer AVGO or CSCO?

In the previous week, Broadcom had 23 more articles in the media than Cisco Systems. MarketBeat recorded 117 mentions for Broadcom and 94 mentions for Cisco Systems. Broadcom's average media sentiment score of 1.34 beat Cisco Systems' score of 0.99 indicating that Broadcom is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Broadcom	92 Very Positive mention(s)	16 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Cisco Systems	65 Very Positive mention(s)	5 Positive mention(s)	13 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals hold more shares of AVGO or CSCO?

76.4% of Broadcom shares are held by institutional investors. Comparatively, 73.3% of Cisco Systems shares are held by institutional investors. 2.0% of Broadcom 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Broadcom beats Cisco Systems on 15 of the 20 factors compared between the two stocks.