Dell Technologies vs Cisco Systems Which Should You Buy?

Dell Technologies and Cisco Systems are two prominent technology companies in the stock market, each known for their innovative products and services. Both companies have emerged as key players in the tech industry, with a strong financial standing and a loyal customer base. Investors are often curious about how these two stocks compare in terms of performance, market trends, and potential for growth. This analysis aims to provide insights into the dynamics of Dell Technologies vs Cisco Systems stocks to help investors make informed decisions.

Dell Technologies or Cisco Systems?

When comparing Dell Technologies 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 Dell Technologies 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. Dell Technologies has a dividend yield of 1.34%, while Cisco Systems has a dividend yield of 2.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dell Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.93%. 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 Dell Technologies P/E ratio at 22.07 and Cisco Systems's P/E ratio at 25.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dell Technologies P/B ratio is -39.53 while Cisco Systems's P/B ratio is 5.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dell Technologies has seen a 5-year revenue growth of 0.36%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dell Technologies's ROE at -157.35% 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 $125.00 for Dell Technologies and $59.04 for Cisco Systems. Over the past year, Dell Technologies's prices ranged from $67.51 to $179.70, with a yearly change of 166.18%. Cisco Systems's prices fluctuated between $44.50 and $59.87, with a yearly change of 34.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.