Ciena vs Cisco Systems Which Is Superior?

Ciena and Cisco Systems are two prominent players in the networking and telecommunications industry, both offering a wide range of products and services to customers worldwide. These companies have experienced varying levels of success in recent years, with Ciena gaining momentum in the market while Cisco Systems faces increased competition. Investors looking to capitalize on the growth potential of the networking sector may want to compare the performance of Ciena and Cisco Systems stocks to make informed investment decisions.

Ciena or Cisco Systems?

When comparing Ciena 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 Ciena 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. Ciena has a dividend yield of -%, while Cisco Systems has a dividend yield of 2.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ciena reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 68.09%.

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 Ciena P/E ratio at 93.79 and Cisco Systems's P/E ratio at 24.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ciena P/B ratio is 4.48 while Cisco Systems's P/B ratio is 5.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ciena has seen a 5-year revenue growth of 0.32%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ciena's ROE at 4.79% and Cisco Systems's ROE at 20.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $86.90 for Ciena and $58.38 for Cisco Systems. Over the past year, Ciena's prices ranged from $42.20 to $91.24, with a yearly change of 116.21%. Cisco Systems's prices fluctuated between $44.50 and $60.23, with a yearly change of 35.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.