Comcast vs Cisco Systems Which Offers More Value?

Comcast and Cisco Systems are two major players in the technology and communications industry. Comcast, a leading telecommunications company, offers a range of services including internet, cable television, and phone services to millions of customers. On the other hand, Cisco Systems is a global tech giant known for its networking and communication technology solutions. Both companies have a strong presence in the market, but investors may be interested in comparing their stock performance to make informed investment decisions.

Comcast or Cisco Systems?

When comparing Comcast and Cisco Systems, 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 Comcast and Cisco Systems.

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. Comcast has a dividend yield of 3.06%, while Cisco Systems has a dividend yield of 2.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%. On the other hand, Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 68.09%.

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 Comcast P/E ratio at 10.50 and Cisco Systems's P/E ratio at 24.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Comcast P/B ratio is 1.80 while Cisco Systems's P/B ratio is 5.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Comcast has seen a 5-year revenue growth of 0.41%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Comcast's ROE at 17.56% and Cisco Systems's ROE at 20.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $60.75 for Comcast and $58.38 for Cisco Systems. Over the past year, Comcast's prices ranged from $53.54 to $66.80, with a yearly change of 24.77%. Cisco Systems's prices fluctuated between $44.50 and $60.23, with a yearly change of 35.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.