Cisco Systems vs Lexicon Pharmaceuticals Which Outperforms?

Cisco Systems and Lexicon Pharmaceuticals are two well-known companies in the technology and biopharmaceutical industries, respectively. Both stocks have generated substantial interest among investors due to their potential for growth and profitability. Cisco Systems is a leading provider of networking equipment and services, while Lexicon Pharmaceuticals specializes in developing innovative therapies for various diseases. Investors are closely monitoring the performance of these stocks to make informed decisions about their investment portfolios.

Cisco Systems or Lexicon Pharmaceuticals?

When comparing Cisco Systems and Lexicon Pharmaceuticals, 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 Lexicon Pharmaceuticals.

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 Lexicon Pharmaceuticals 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, Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals's P/E ratio at -1.97. 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 Lexicon Pharmaceuticals's P/B ratio is 1.64.

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 Lexicon Pharmaceuticals's is -0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and Lexicon Pharmaceuticals's ROE at 73.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $1.23 for Lexicon Pharmaceuticals. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. Lexicon Pharmaceuticals's prices fluctuated between $0.94 and $3.73, with a yearly change of 296.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.