Cisco Systems vs Texas Instruments Which Is More Profitable?

Cisco Systems and Texas Instruments are two major players in the technology sector, both offering a range of products and services that cater to the ever-evolving needs of businesses and consumers. Cisco Systems specializes in networking equipment and solutions, while Texas Instruments focuses on semiconductor technologies. Investors looking to add technology stocks to their portfolio may consider these two companies for their potential for growth and innovation. This comparison will analyze key financial metrics, market performance, and strategic positioning of Cisco Systems and Texas Instruments to help investors make informed decisions.

Cisco Systems or Texas Instruments ?

When comparing Cisco Systems and Texas Instruments , 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 Texas Instruments .

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 Texas Instruments has a dividend yield of 2.77%. 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, Texas Instruments reports a 5-year dividend growth of 13.80% year and a payout ratio of 95.39%.

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 24.94 and Texas Instruments 's P/E ratio at 34.97. 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 5.17 while Texas Instruments 's P/B ratio is 10.06.

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 Texas Instruments 's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 20.56% and Texas Instruments 's ROE at 29.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.13 for Cisco Systems and $189.47 for Texas Instruments . Over the past year, Cisco Systems's prices ranged from $44.50 to $60.23, with a yearly change of 35.35%. Texas Instruments 's prices fluctuated between $155.46 and $220.39, with a yearly change of 41.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.