VIA vs Cisco Systems Which Is a Smarter Choice?

VIA Inc. and Cisco Systems are two leading companies in the technology sector, both known for their innovative solutions and strong market presence. VIA Inc. focuses on developing cutting-edge software and services, while Cisco Systems is a multinational corporation offering networking hardware, software, and telecommunications equipment. Investors looking to diversify their portfolios in the technology industry may consider comparing the performance of VIA and Cisco stocks to make informed investment decisions. Let's delve deeper into the financials and market trends of these companies to analyze their potential for growth and profitability.

VIA or Cisco Systems?

When comparing VIA 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 VIA 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. VIA 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. VIA reports a 5-year dividend growth of 0.00% year and a payout ratio of 76.19%. 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 VIA P/E ratio at 16.97 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. VIA P/B ratio is 5.21 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, VIA has seen a 5-year revenue growth of -0.52%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with VIA's ROE at 32.17% 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 ¥127.00 for VIA and $58.13 for Cisco Systems. Over the past year, VIA's prices ranged from ¥99.00 to ¥227.00, with a yearly change of 129.29%. 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.