Cisco Systems vs WPP Which Is More Lucrative?

Cisco Systems and WPP are two prominent companies in the tech and advertising industries, respectively. While Cisco Systems focuses on networking hardware, software, and services, WPP specializes in providing advertising, marketing, and communication services. Both companies have had their ups and downs in the stock market, with fluctuations in their stock prices reflecting changes in their respective industries. Investors looking to diversify their portfolio may consider investing in both Cisco Systems and WPP stocks to capitalize on opportunities in the technology and advertising sectors.

Cisco Systems or WPP?

When comparing Cisco Systems and WPP, 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 WPP.

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 2.65%, while WPP has a dividend yield of 3.55%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 207.87%.

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 25.44 and WPP's P/E ratio at 228.70. 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 5.28 while WPP's P/B ratio is 13.30.

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 WPP's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 20.56% and WPP's ROE at 5.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $59.77 for Cisco Systems and $54.84 for WPP. Over the past year, Cisco Systems's prices ranged from $44.50 to $60.23, with a yearly change of 35.35%. WPP's prices fluctuated between $43.02 and $55.74, with a yearly change of 29.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.