Apple vs Cisco Systems

Apple and Cisco Systems are two prominent technology companies that have been competing in the stock market for years. Apple is best known for its innovative products, such as the iPhone and Mac computers, while Cisco Systems focuses on networking and communication technology. Both companies have experienced fluctuations in their stock prices over the years, driven by factors such as product releases, market trends, and global economic conditions. Investors are constantly comparing the performance of Apple and Cisco Systems stocks to determine where to allocate their funds for optimal returns.

Apple or Cisco Systems?

When comparing Apple and Cisco Systems, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Apple and Cisco Systems.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Apple has a dividend yield of 0.42%, while Cisco Systems has a dividend yield of 2.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%. On the other hand, Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 61.86%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Apple P/E ratio at 35.06 and Cisco Systems's P/E ratio at 21.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 53.59 while Cisco Systems's P/B ratio is 4.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and Cisco Systems's ROE at 22.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.37 for Apple and $53.92 for Cisco Systems. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. Cisco Systems's prices fluctuated between $44.50 and $54.61, with a yearly change of 22.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.