Cisco Systems vs Yealink Network Technology Which Is Superior?

Cisco Systems and Yealink Network Technology are two prominent players in the telecommunications industry, each offering a range of products and services aimed at enhancing communication and connectivity for businesses. While Cisco Systems has a long-standing reputation for its robust network solutions and strong global presence, Yealink Network Technology has gained recognition for its innovative IP phone systems and video conferencing solutions. Investors looking to capitalize on the growth potential of the telecommunications sector may find opportunities in these competing stocks.

Cisco Systems or Yealink Network Technology?

When comparing Cisco Systems and Yealink Network Technology, 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 Yealink Network Technology.

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 2.7%, while Yealink Network Technology has a dividend yield of 3.94%. 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, Yealink Network Technology reports a 5-year dividend growth of 7.71% year and a payout ratio of 150.24%.

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 25.00 and Yealink Network Technology's P/E ratio at 19.67. 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 5.19 while Yealink Network Technology's P/B ratio is 5.79.

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 Yealink Network Technology's is 1.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 20.56% and Yealink Network Technology's ROE at 29.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.63 for Cisco Systems and ¥37.65 for Yealink Network Technology. Over the past year, Cisco Systems's prices ranged from $44.50 to $60.23, with a yearly change of 35.35%. Yealink Network Technology's prices fluctuated between ¥22.45 and ¥50.71, with a yearly change of 125.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.