Cisco Systems vs HP Which Is More Reliable?

Cisco Systems and HP are two giants in the technology industry, both vying for dominance in the networking and infrastructure space. Cisco Systems, known for its cutting-edge networking solutions, has maintained a strong position in the market with consistent growth and innovation. On the other hand, HP, a diversified technology company, has seen its stock fluctuate in recent years as it undergoes strategic transformations. Investors are closely monitoring the performance of these two tech giants to gauge their long-term prospects in the rapidly evolving industry.

Cisco Systems or HP?

When comparing Cisco Systems and HP, 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 HP.

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 HP has a dividend yield of 3.66%. 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, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 37.71%.

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 HP's P/E ratio at 12.97. 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 HP's P/B ratio is -26.49.

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 HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and HP's ROE at -226.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $36.80 for HP. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. HP's prices fluctuated between $27.43 and $39.52, with a yearly change of 44.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.