Cisco Systems (NASDAQ: XPLR) and Xplore Technologies (NASDAQ:XPLR) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

71.7% of Cisco Systems shares are held by institutional investors. Comparatively, 23.8% of Xplore Technologies shares are held by institutional investors. 0.1% of Cisco Systems shares are held by insiders. Comparatively, 13.2% of Xplore Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Cisco Systems and Xplore Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cisco Systems 0.22% 22.12% 9.46%
Xplore Technologies 0.35% 3.20% 1.57%

Risk and Volatility

Cisco Systems has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Xplore Technologies has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cisco Systems and Xplore Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cisco Systems $49.33 billion 4.62 $110.00 million $2.34 20.22
Xplore Technologies $86.94 million 0.76 $300,000.00 $0.09 66.56

Cisco Systems has higher revenue and earnings than Xplore Technologies. Cisco Systems is trading at a lower price-to-earnings ratio than Xplore Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

Cisco Systems pays an annual dividend of $1.32 per share and has a dividend yield of 2.8%. Xplore Technologies does not pay a dividend. Cisco Systems pays out 56.4% of its earnings in the form of a dividend. Cisco Systems has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for Cisco Systems and Xplore Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cisco Systems 0 7 22 0 2.76
Xplore Technologies 0 1 1 0 2.50

Cisco Systems presently has a consensus price target of $47.85, suggesting a potential upside of 1.18%. Xplore Technologies has a consensus price target of $6.00, suggesting a potential upside of 0.17%. Given Cisco Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Cisco Systems is more favorable than Xplore Technologies.

Summary

Cisco Systems beats Xplore Technologies on 13 of the 17 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 worldwide. The company offers switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications. It also provides collaboration products comprising unified communications, TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, the company offers security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, advisory, integration, and managed services; and other products, such as service provider video software and solutions, and cloud and system management products. Further, it offers technical support services and advanced services; and hyperconvergence software, cloud calling and contact center solutions, and AI-driven relationship intelligence platform. The company serves businesses of various sizes, public institutions, governments, and service providers. It sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company was founded in 1984 and is headquartered in San Jose, California.

About Xplore Technologies

Xplore Technologies Corp. develops, integrates, and markets rugged mobile personal computer systems in the United States, Canada, and internationally. The company's products enable the extension of traditional computing systems to a range of field personnel, including energy pipeline inspectors, public safety personnel, warehouse workers, and pharmaceutical scientists. It offers a line of iX104 tablet PCs that are designed to operate in various work environments, such as extreme temperatures, constant vibrations, rain, and blowing dirt and dusty conditions; and are fitted with a range of performance matched accessories comprising multiple docking station solutions, wireless connectivity alternatives, global positioning system modules, and biometric and smartcard modules, as well as traditional peripherals, such as keyboards, mice, and cases. The company's products also consist of XSlate B10 and XSlate D10 rugged tablets; XSLATE R12 and Motion F5m/C5m tablets; and Bobcat, a rugged tablet that has a Windows operating system. It serves public safety, utility, telecommunications, field service, warehousing logistics, transportation, oil and gas production, manufacturing, route delivery, military, and homeland security markets. The company was founded in 1998 and is headquartered in Austin, Texas.

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