Cisco Systems vs F5 Which Performs Better?

Cisco Systems and F5 Networks are both prominent players in the networking and cybersecurity industries, each offering a unique set of products and services. Cisco is known for its extensive range of networking hardware and software solutions, while F5 specializes in application delivery and security services. Investors often compare and contrast these two companies' stocks to determine which offers a better investment opportunity. Understanding the financial performance and market trends of Cisco Systems and F5 Networks can provide valuable insights for investors looking to make informed decisions.

Cisco Systems or F5?

When comparing Cisco Systems and F5, 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 F5.

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 F5 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 61.86%. On the other hand, F5 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 22.83 and F5's P/E ratio at 25.00. 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 F5's P/B ratio is 4.53.

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 F5's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and F5's ROE at 19.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $241.05 for F5. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. F5's prices fluctuated between $158.22 and $250.46, with a yearly change of 58.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.