Cisco Systems vs EMC Which Is More Profitable?

Cisco Systems and EMC are two leading tech companies in the information technology industry. Cisco Systems is known for its networking and communication hardware, software, and services, while EMC specializes in data storage and cloud computing technologies. Both companies have been competing for market share and investor attention, with their stocks often influenced by shifts in the industry and broader economic trends. Analyzing the performance of Cisco Systems and EMC stocks can provide valuable insights into the health of the tech sector and investor sentiment.

Cisco Systems or EMC?

When comparing Cisco Systems and EMC, 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 EMC.

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 EMC has a dividend yield of -%. 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 68.09%. On the other hand, EMC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 24.94 and EMC's P/E ratio at -2.53. 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 5.17 while EMC's P/B ratio is 0.74.

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 EMC's is -0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 20.56% and EMC's ROE at -32.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.13 for Cisco Systems and ฿0.07 for EMC. Over the past year, Cisco Systems's prices ranged from $44.50 to $60.23, with a yearly change of 35.35%. EMC's prices fluctuated between ฿0.04 and ฿0.12, with a yearly change of 200.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.