Cisco Systems (NASDAQ:CSCO – Get Free Report) and Westell Technologies (OTCMKTS:WSTL – Get Free Report) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
Cisco Systems has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Westell Technologies has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Profitability
This table compares Cisco Systems and Westell Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cisco Systems | 20.14% | 28.44% | 10.99% |
| Westell Technologies | -30.99% | -18.79% | -15.09% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cisco Systems | 0 | 6 | 15 | 3 | 2.88 |
| Westell Technologies | 0 | 0 | 0 | 0 | 0.00 |
Cisco Systems presently has a consensus target price of $123.14, indicating a potential upside of 6.29%. Given Cisco Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Cisco Systems is more favorable than Westell Technologies.
Earnings and Valuation
This table compares Cisco Systems and Westell Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cisco Systems | $56.65 billion | 8.06 | $10.18 billion | $3.08 | 37.62 |
| Westell Technologies | $29.96 million | 3.62 | -$10.10 million | ($0.56) | -12.25 |
Cisco Systems has higher revenue and earnings than Westell Technologies. Westell Technologies is trading at a lower price-to-earnings ratio than Cisco Systems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
73.3% of Cisco Systems shares are held by institutional investors. Comparatively, 10.9% of Westell Technologies shares are held by institutional investors. 0.0% of Cisco Systems shares are held by company insiders. Comparatively, 24.6% of Westell Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Cisco Systems beats Westell Technologies on 14 of the 15 factors compared between the two stocks.
About Cisco Systems
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and network assurance. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
About Westell Technologies
Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States. The company operates through three segments: In-Building Wireless (IBW), Intelligent Site Management (ISM), and Communications Network Solutions (CNS). The IBW segment offers distributed antenna system conditioners; digital repeaters; battery backup units; and system components and antennas, including couplers, duplexers, splitters, filters, and tappers for commercial and public safety in-building wireless systems. The ISM segment provides a suite of remote units, which provide machine-to-machine communications that enable operators to remotely monitor, manage, and control site infrastructure and support systems. The CNS segment provides a range of indoor and outdoor network infrastructure, such as integrated cabinets, power distribution products, copper and fiber connectivity products, and T1 network interface units. The company serves wireless and wireline service providers, multiple systems operators, Internet service providers, systems integrators, neutral host operators, and distributors through field sales organization, distributors, and partners. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.
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