Cisco Systems vs Thermo Fisher Scientific

Cisco Systems and Thermo Fisher Scientific are two leading companies in the technology and healthcare industries, respectively. Cisco Systems is a multinational technology conglomerate known for its networking hardware, software, and services. Thermo Fisher Scientific, on the other hand, is a global leader in providing scientific instruments, reagents, and services for research, healthcare, and industrial applications. Both companies have experienced significant growth in recent years, making them attractive options for investors looking to add stable and innovative stocks to their portfolios.

Cisco Systems or Thermo Fisher Scientific?

When comparing Cisco Systems and Thermo Fisher Scientific, 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 Thermo Fisher Scientific.

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 2.94%, while Thermo Fisher Scientific has a dividend yield of 0.32%. 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, Thermo Fisher Scientific reports a 5-year dividend growth of 15.54% year and a payout ratio of 8.92%.

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 21.06 and Thermo Fisher Scientific's P/E ratio at 36.87. 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 4.78 while Thermo Fisher Scientific's P/B ratio is 4.84.

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 Thermo Fisher Scientific's is 0.83%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and Thermo Fisher Scientific's ROE at 13.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.92 for Cisco Systems and $599.38 for Thermo Fisher Scientific. Over the past year, Cisco Systems's prices ranged from $44.50 to $54.61, with a yearly change of 22.71%. Thermo Fisher Scientific's prices fluctuated between $415.60 and $627.88, with a yearly change of 51.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.