Cisco Systems vs QUALCOMM Which Is Superior?

Cisco Systems and Qualcomm are two giants in the tech industry, both known for their innovative products and services. Cisco is a leading provider of networking equipment and solutions, while Qualcomm is a major player in the development of wireless technologies and semiconductors. Investors often compare the performance of these two stocks to make informed decisions about their portfolio. Understanding the financial health, market trends, and strategic outlook of Cisco Systems and Qualcomm can help investors make sound investment decisions.

Cisco Systems or QUALCOMM ?

When comparing Cisco Systems and QUALCOMM , 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 QUALCOMM .

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 QUALCOMM has a dividend yield of 2.11%. 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 68.09%. On the other hand, QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%.

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 24.90 and QUALCOMM 's P/E ratio at 17.43. 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 5.17 while QUALCOMM 's P/B ratio is 6.73.

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 QUALCOMM 's is 1.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 20.56% and QUALCOMM 's ROE at 41.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.38 for Cisco Systems and $156.63 for QUALCOMM . Over the past year, Cisco Systems's prices ranged from $44.50 to $60.23, with a yearly change of 35.35%. QUALCOMM 's prices fluctuated between $134.94 and $230.63, with a yearly change of 70.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.