Sysco vs Cisco Systems Which Offers More Value?

Sysco and Cisco Systems are two publicly traded companies that operate in different industries. Sysco Corporation is a multinational distributor of food products and operates as a wholesale supplier to restaurants, healthcare facilities, and educational institutions. On the other hand, Cisco Systems is a technology company that specializes in networking hardware, software, and telecommunications equipment. Both companies are leaders in their respective industries, but their stock performance may vary based on market conditions and investor sentiment. It is important for investors to thoroughly research and analyze both stocks before making any investment decisions.

Sysco or Cisco Systems?

When comparing Sysco 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 Sysco 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. Sysco has a dividend yield of 2.73%, while Cisco Systems has a dividend yield of 2.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sysco reports a 5-year dividend growth of 5.30% year and a payout ratio of 52.03%. On the other hand, Cisco Systems reports a 5-year dividend growth of 2.87% year and a payout ratio of 69.73%.

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 Sysco P/E ratio at 18.90 and Cisco Systems's P/E ratio at 27.72. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sysco P/B ratio is 18.14 while Cisco Systems's P/B ratio is 5.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sysco has seen a 5-year revenue growth of 0.35%, while Cisco Systems's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sysco's ROE at 94.47% and Cisco Systems's ROE at 20.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $74.14 for Sysco and $62.80 for Cisco Systems. Over the past year, Sysco's prices ranged from $69.03 to $82.33, with a yearly change of 19.27%. Cisco Systems's prices fluctuated between $44.50 and $66.50, with a yearly change of 49.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.