WallStSmart

Ambev SA ADR (ABEV)vsCisco Systems Inc (CSCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ambev SA ADR generates 49% more annual revenue ($88.21B vs $59.05B). CSCO leads profitability with a 18.8% profit margin vs 17.7%. CSCO appears more attractively valued with a PEG of 1.46. CSCO earns a higher WallStSmart Score of 70/100 (B-).

ABEV

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

CSCO

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 6/9Altman Z: 1.17
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$11.91

Current Price

$3.29

$8.62 discount

UndervaluedFair: $11.91Overvalued
CSCOSignificantly Overvalued (-70.9%)

Margin of Safety

-70.9%

Fair Value

$56.51

Current Price

$96.57

$40.06 premium

UndervaluedFair: $56.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

Market CapQuality
$53.50B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.5%8/10

Strong operational efficiency at 26.5%

CSCO5 strengths · Avg: 8.6/10
Market CapQuality
$364.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
24.9%8/10

Strong operational efficiency at 24.9%

EPS GrowthGrowth
31.2%8/10

Earnings expanding 31.2% YoY

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

ABEV3 concerns · Avg: 3.3/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

EPS GrowthGrowth
2.2%4/10

2.2% earnings growth

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

CSCO2 concerns · Avg: 3.0/10
P/E RatioValuation
33.1x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.172/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.

Bull Case : CSCO

The strongest argument for CSCO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 18.8% and operating margin at 24.9%. PEG of 1.46 suggests the stock is reasonably priced for its growth.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.

Bear Case : CSCO

The primary concerns for CSCO are P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

ABEV profiles as a declining stock while CSCO is a mature play — different risk/reward profiles.

CSCO carries more volatility with a beta of 0.91 — expect wider price swings.

CSCO is growing revenue faster at 9.7% — sustainability is the question.

ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.

Bottom Line

CSCO scores higher overall (70/100 vs 57/100), backed by strong 18.8% margins. ABEV offers better value entry with a 74.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ambev SA ADR

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.

Cisco Systems Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops, manufactures and sells networking hardware, software, telecommunications equipment and other high-technology services and products. Through its numerous acquired subsidiaries, such as OpenDNS, Webex, Jabber and Jasper, Cisco specializes in specific tech markets, such as the Internet of Things (IoT), domain security and energy management. On January 25, 2021, Cisco reincorporated in Delaware.

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