Cisco Systems vs Sonos Which Is More Promising?

Cisco Systems and Sonos are two prominent companies in the technology sector, each offering unique products and services to consumers. Cisco Systems is a global leader in networking and communication technology, while Sonos specializes in high-quality audio products. Both companies have seen fluctuations in their stock prices in recent years, reflecting the ever-changing nature of the market. Investors looking to capitalize on the potential growth of these companies will need to carefully analyze their financial performance and industry trends to make informed decisions.

Cisco Systems or Sonos?

When comparing Cisco Systems and Sonos, 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 Sonos.

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 Sonos 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, Sonos 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 Sonos's P/E ratio at -107.87. 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 Sonos's P/B ratio is 3.78.

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 Sonos's is -0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and Sonos's ROE at -3.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $13.90 for Sonos. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. Sonos's prices fluctuated between $10.23 and $19.76, with a yearly change of 93.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.