Cisco Systems vs Unifi Which Is a Better Investment?

Cisco Systems and Unifi are both leading technology companies in the networking industry, each offering innovative solutions for businesses and consumers. Cisco Systems is a well-established, global company known for its robust networking equipment and software solutions. On the other hand, Unifi, a relative newcomer, provides affordable, user-friendly networking products targeted towards small and medium-sized businesses. Both companies have experienced fluctuations in their stock prices, making them intriguing options for investors looking to capitalize on the evolving technology landscape.

Cisco Systems or Unifi?

When comparing Cisco Systems and Unifi, 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 Unifi.

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 Unifi 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, Unifi 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 Unifi's P/E ratio at -2.58. 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 Unifi's P/B ratio is 0.41.

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 Unifi's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and Unifi's ROE at -15.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.36 for Cisco Systems and $5.75 for Unifi. Over the past year, Cisco Systems's prices ranged from $44.50 to $59.38, with a yearly change of 33.44%. Unifi's prices fluctuated between $5.41 and $7.91, with a yearly change of 46.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.