Cisco Systems (NASDAQ: CSCO) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its competitors? We will compare Cisco Systems to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, dividends, earnings, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Cisco Systems and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cisco Systems 0 11 20 0 2.65
Cisco Systems Competitors 481 2714 4084 195 2.53

Cisco Systems currently has a consensus target price of $35.56, suggesting a potential upside of 6.33%. As a group, “Communications & Networking” companies have a potential upside of 22.76%. Given Cisco Systems’ competitors higher probable upside, analysts plainly believe Cisco Systems has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Cisco Systems and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cisco Systems $48.01 billion $14.72 billion 17.51
Cisco Systems Competitors $2.41 billion $618.33 million 26.68

Cisco Systems has higher revenue and earnings than its competitors. Cisco Systems is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Cisco Systems and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cisco Systems 20.02% 16.91% 8.61%
Cisco Systems Competitors -2.09% -7.03% 0.12%

Dividends

Cisco Systems pays an annual dividend of $1.16 per share and has a dividend yield of 3.5%. Cisco Systems pays out 60.7% of its earnings in the form of a dividend. As a group, “Communications & Networking” companies pay a dividend yield of 2.0% and pay out 40.7% of their earnings in the form of a dividend.

Volatility and Risk

Cisco Systems has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Cisco Systems’ competitors have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

75.4% of Cisco Systems shares are owned by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 0.1% of Cisco Systems shares are owned by insiders. Comparatively, 12.5% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Cisco Systems beats its competitors on 10 of the 15 factors compared.

Cisco Systems Company Profile

Cisco Systems, Inc. designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world. The Company operates through three geographic segments: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific, Japan and China (APJC). The Company groups its products and technologies into various categories, such as Switching; Next-Generation Network (NGN) Routing; Collaboration; Data Center; Wireless; Service Provider Video; Security, and Other Products. In addition to its product offerings, the Company provides a range of service offerings, including technical support services and advanced services. The Company delivers its technology and services to its customers as solutions for their priorities, including cloud, video, mobility, security, collaboration and analytics. The Company serves customers, including businesses of all sizes, public institutions, governments and service providers.

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