Cisco Systems vs Ubiquiti Which Is Stronger?

Cisco Systems and Ubiquiti are two prominent players in the networking and communications industry, each offering unique products and services to cater to the needs of businesses and individuals around the world. Cisco Systems, a well-established industry giant, is known for its comprehensive range of networking solutions and services, while Ubiquiti, a newer entrant, has gained popularity for its affordable yet high-performance networking products. Investors looking to capitalize on the growth potential of the networking industry may consider investing in either Cisco Systems or Ubiquiti stocks, depending on their risk tolerance and investment objectives.

Cisco Systems or Ubiquiti?

When comparing Cisco Systems and Ubiquiti, 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 Ubiquiti.

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 2.5%, while Ubiquiti has a dividend yield of 0.75%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cisco Systems reports a 5-year dividend growth of 2.87% year and a payout ratio of 69.73%. On the other hand, Ubiquiti reports a 5-year dividend growth of 16.89% year and a payout ratio of 32.62%.

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 27.71 and Ubiquiti's P/E ratio at 43.60. 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 5.59 while Ubiquiti's P/B ratio is 66.78.

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 0.13%, while Ubiquiti's is 0.96%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 20.19% and Ubiquiti's ROE at 296.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $62.19 for Cisco Systems and $304.00 for Ubiquiti. Over the past year, Cisco Systems's prices ranged from $44.50 to $66.50, with a yearly change of 49.44%. Ubiquiti's prices fluctuated between $104.24 and $469.98, with a yearly change of 350.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.