CSCO vs. IBM, ANET, QCOM, TMUS, ADBE, INTU, AMAT, INTC, NOW, and UBER
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), QUALCOMM (QCOM), T-Mobile US (TMUS), Adobe (ADBE), Intuit (INTU), Applied Materials (AMAT), Intel (INTC), ServiceNow (NOW), and Uber Technologies (UBER). 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 stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, media sentiment, valuation, analyst recommendations, risk, institutional ownership and community ranking.
International Business Machines pays an annual dividend of $6.64 per share and has a dividend yield of 3.6%. Cisco Systems pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. International Business Machines pays out 81.7% 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.
International Business Machines presently has a consensus target price of $177.23, indicating a potential downside of 3.80%. Cisco Systems has a consensus target price of $55.53, indicating a potential upside of 14.96%. Given International Business Machines' higher possible upside, analysts plainly believe Cisco Systems is more favorable than International Business Machines.
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 58.82% of users gave International Business Machines an outperform vote.
59.0% of International Business Machines shares are owned by institutional investors. Comparatively, 73.3% of Cisco Systems shares are owned by institutional investors. 0.1% of International Business Machines 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 stock will outperform the market over the long term.
Cisco Systems has a net margin of 23.49% compared to Cisco Systems' net margin of 12.13%. Cisco Systems' return on equity of 39.55% beat International Business Machines' return on equity.
International Business Machines has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Cisco Systems has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
In the previous week, International Business Machines had 13 more articles in the media than Cisco Systems. MarketBeat recorded 45 mentions for International Business Machines and 32 mentions for Cisco Systems. International Business Machines' average media sentiment score of 0.72 beat Cisco Systems' score of 0.57 indicating that Cisco Systems is being referred to more favorably in the news media.
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.
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.
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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