Cisco Systems vs Dell Technologies Which Offers More Value?

Cisco Systems and Dell Technologies are two well-known companies in the tech industry that offer various products and services to consumers and businesses worldwide. Both companies are publicly traded on the stock market, providing investors with opportunities to potentially profit from their stock performance. Cisco Systems focuses on networking technology, while Dell Technologies specializes in computer hardware and software solutions. By comparing the stocks of these two companies, investors can gain insights into their financial health, growth potential, and market competitiveness.

Cisco Systems or Dell Technologies?

When comparing Cisco Systems and Dell Technologies, 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 Cisco Systems and Dell Technologies.

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. Cisco Systems has a dividend yield of 2.71%, while Dell Technologies has a dividend yield of 1.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 61.86%. On the other hand, Dell Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.68%.

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 Cisco Systems P/E ratio at 22.83 and Dell Technologies's P/E ratio at 24.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cisco Systems P/B ratio is 5.18 while Dell Technologies's P/B ratio is -33.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cisco Systems has seen a 5-year revenue growth of 0.37%, while Dell Technologies's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and Dell Technologies's ROE at -147.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $135.02 for Dell Technologies. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. Dell Technologies's prices fluctuated between $67.51 and $179.70, with a yearly change of 166.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.