Cisco Systems (CSCO) Competitors

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

Which has stronger 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	25.04	$5.90B	$2.67	102.84
Cisco Systems	$53.80B	5.10	$10.32B	$2.45	28.29

Is AVGO or CSCO more profitable?

Broadcom has a net margin of 22.64% compared to Cisco Systems' net margin of 17.60%. 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	17.60%	26.48%	9.87%

Do insiders & institutionals have more ownership in AVGO or CSCO?

76.4% of Broadcom shares are owned by institutional investors. Comparatively, 73.3% of Cisco Systems shares are owned by institutional investors. 2.0% of Broadcom shares are owned by insiders. Comparatively, 0.0% of Cisco Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Is AVGO or CSCO a better dividend stock?

Broadcom pays an annual dividend of $2.36 per share and has a dividend yield of 0.9%. 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 66.9% 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.

Do analysts rate AVGO or CSCO?

Broadcom presently has a consensus price target of $281.46, suggesting a potential upside of 2.51%. Cisco Systems has a consensus price target of $69.53, suggesting a potential upside of 0.30%. Given Broadcom's stronger consensus rating and higher probable upside, equities analysts clearly believe Broadcom is more favorable than Cisco Systems.

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)	2 Strong Buy rating(s)	3.03
Cisco Systems	0 Sell rating(s)	7 Hold rating(s)	14 Buy rating(s)	2 Strong Buy rating(s)	2.78

Which has more risk & volatility, AVGO or CSCO?

Broadcom has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Cisco Systems has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Does the media favor AVGO or CSCO?

In the previous week, Broadcom had 83 more articles in the media than Cisco Systems. MarketBeat recorded 178 mentions for Broadcom and 95 mentions for Cisco Systems. Broadcom's average media sentiment score of 1.34 beat Cisco Systems' score of 1.21 indicating that Broadcom is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Broadcom	137 Very Positive mention(s)	18 Positive mention(s)	18 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Cisco Systems	74 Very Positive mention(s)	1 Positive mention(s)	11 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Broadcom beats Cisco Systems on 15 of the 19 factors compared between the two stocks.