ASML vs Cisco Systems

ASML Holding NV and Cisco Systems Inc. are two prominent technology companies that operate in different sectors of the industry. ASML is a leading supplier of photolithography equipment used in the semiconductor manufacturing process, while Cisco is a multinational corporation specializing in networking hardware, software, and telecommunications equipment. Both companies have shown strong performance in the stock market, with ASML experiencing growth due to increasing demand for semiconductor technology and Cisco benefiting from the expansion of digital connectivity. Investors interested in the technology sector may find opportunities for growth and stability in both ASML and Cisco stocks.

ASML or Cisco Systems?

When comparing ASML 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 ASML 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. ASML has a dividend yield of 0.9%, 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. ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.60%. 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 ASML P/E ratio at 39.13 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. ASML P/B ratio is 17.93 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, ASML has seen a 5-year revenue growth of 1.72%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 49.99% 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 $717.50 for ASML and $53.92 for Cisco Systems. Over the past year, ASML's prices ranged from $573.86 to $1110.09, with a yearly change of 93.44%. 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.