Cisco Systems vs Siemens Which Offers More Value?

Cisco Systems and Siemens are two of the biggest players in the technology and telecommunications sectors. Both companies are known for their innovative products and services in networking, communication, and other related fields. Their stocks have been popular among investors due to their strong financial performances and global presence. However, there are differences between the two companies in terms of market share, revenue, and growth potential. This comparison will analyze the key similarities and differences between Cisco Systems and Siemens stocks.

Cisco Systems or Siemens?

When comparing Cisco Systems and Siemens, 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 Siemens.

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 Siemens has a dividend yield of 0.13%. 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, Siemens reports a 5-year dividend growth of 7.39% 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 24.90 and Siemens's P/E ratio at 103.37. 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 Siemens's P/B ratio is 18.28.

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 Siemens's is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 20.56% and Siemens's ROE at 19.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.38 for Cisco Systems and ₹7791.95 for Siemens. Over the past year, Cisco Systems's prices ranged from $44.50 to $60.23, with a yearly change of 35.35%. Siemens's prices fluctuated between ₹3809.15 and ₹8129.90, with a yearly change of 113.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.