Cisco Systems Inc (CSCO)vsTelefonaktiebolaget LM Ericsson B ADR (ERIC)
CSCO
Cisco Systems Inc
$77.60
+1.17%
TECHNOLOGY · Cap: $311.74B
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.47
-3.69%
TECHNOLOGY · Cap: $40.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 307% more annual revenue ($240.31B vs $59.05B). CSCO leads profitability with a 18.8% profit margin vs 12.0%. CSCO appears more attractively valued with a PEG of 1.34. CSCO earns a higher WallStSmart Score of 70/100 (B-).
CSCO
Strong Buy70
out of 100
Grade: B-
ERIC
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.6%
Fair Value
$130.10
Current Price
$77.60
$52.50 discount
Margin of Safety
+73.8%
Fair Value
$42.59
Current Price
$11.47
$31.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 24 in profit
Strong operational efficiency at 24.9%
Earnings expanding 31.2% YoY
Generating 1.5B in free cash flow
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Generating 14.9B in free cash flow
Every $100 of equity generates 28 in profit
Attractively priced relative to earnings
Areas to Watch
Moderate valuation
Distress zone — elevated risk
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 5.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : ERIC
The strongest argument for ERIC centers on Price/Book, EPS Growth, Free Cash Flow.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Altman Z-Score.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
CSCO profiles as a mature stock while ERIC is a declining play — different risk/reward profiles.
CSCO carries more volatility with a beta of 0.83 — expect wider price swings.
CSCO is growing revenue faster at 9.7% — sustainability is the question.
ERIC generates stronger free cash flow (14.9B), providing more financial flexibility.
Bottom Line
CSCO scores higher overall (70/100 vs 52/100), backed by strong 18.8% margins. ERIC offers better value entry with a 73.8% 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.
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.
Visit Website →Telefonaktiebolaget LM Ericsson B ADR
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Telefonaktiebolaget LM Ericsson (publ), provides communications infrastructure, services and software solutions for telecommunications and other sectors. The company is headquartered in Stockholm, Sweden.
Visit Website →Compare with Other COMMUNICATION EQUIPMENT Stocks
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