HPC vs Cisco Systems Which Is More Lucrative?

High-performance computing (HPC) and Cisco Systems are two leading companies in the tech industry, both offering unique opportunities for investors. HPC stocks are driven by the increasing demand for supercomputing solutions, while Cisco Systems stocks benefit from its dominance in networking and communication technologies. Both companies have shown consistent growth and profitability over the years, making them attractive options for investors seeking exposure to the fast-paced world of technology. This comparison will delve into the key differences and similarities between HPC and Cisco Systems stocks.

HPC or Cisco Systems?

When comparing HPC 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 HPC 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. HPC has a dividend yield of -%, 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. HPC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 HPC P/E ratio at 9.45 and Cisco Systems's P/E ratio at 24.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HPC P/B ratio is 0.21 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, HPC has seen a 5-year revenue growth of 0.10%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HPC's ROE at 2.21% 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 HK$0.06 for HPC and $58.13 for Cisco Systems. Over the past year, HPC's prices ranged from HK$0.03 to HK$0.08, with a yearly change of 151.61%. 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.