Cisco Systems vs Nokia Which Is More Attractive?

Cisco Systems and Nokia are two major players in the technology sector, both offering a range of networking and communication solutions to customers worldwide. Their stocks have been closely watched by investors, as both companies have shown strong performance in recent years. Cisco Systems, known for its networking hardware and software, has maintained solid growth and profitability. On the other hand, Nokia, a leader in telecommunications equipment, has faced some challenges but remains a key player in the industry. Investors continue to weigh the potential of these two stocks in the ever-evolving tech market.

Cisco Systems or Nokia?

When comparing Cisco Systems and Nokia, 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 Nokia.

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 Nokia has a dividend yield of 3.61%. 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, Nokia reports a 5-year dividend growth of 0.00% year and a payout ratio of 173.43%.

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 Nokia's P/E ratio at 56.47. 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 Nokia's P/B ratio is 1.12.

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 Nokia's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and Nokia's ROE at 1.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $4.54 for Nokia. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. Nokia's prices fluctuated between $2.94 and $4.95, with a yearly change of 68.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.