Cisco Systems vs GLOBALFOUNDRIES Which Is Stronger?

Cisco Systems and GLOBALFOUNDRIES are two prominent companies in the technology sector, but they operate in different areas of the industry. Cisco Systems is a multinational corporation specializing in networking hardware, software, and telecommunications equipment. On the other hand, GLOBALFOUNDRIES is a semiconductor manufacturer focused on producing advanced chips for various applications. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors looking to capitalize on the tech market.

Cisco Systems or GLOBALFOUNDRIES?

When comparing Cisco Systems and GLOBALFOUNDRIES, 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 GLOBALFOUNDRIES.

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 GLOBALFOUNDRIES 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, GLOBALFOUNDRIES 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 GLOBALFOUNDRIES's P/E ratio at 31.77. 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 GLOBALFOUNDRIES's P/B ratio is 2.04.

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 GLOBALFOUNDRIES's is 0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and GLOBALFOUNDRIES's ROE at 6.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $42.23 for GLOBALFOUNDRIES. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. GLOBALFOUNDRIES's prices fluctuated between $35.85 and $62.61, with a yearly change of 74.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.