Cisco Systems Inc (CSCO)vsTelefonaktiebolaget LM Ericsson B ADR (ERIC)
CSCO
Cisco Systems Inc
$121.64
+1.88%
TECHNOLOGY · Cap: $473.64B
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$12.56
-5.92%
TECHNOLOGY · Cap: $40.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 296% more annual revenue ($240.31B vs $60.75B). CSCO leads profitability with a 19.7% profit margin vs 10.9%. CSCO appears more attractively valued with a PEG of 1.68. CSCO earns a higher WallStSmart Score of 71/100 (B).
CSCO
Strong Buy71
out of 100
Grade: B
ERIC
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CSCO.
Margin of Safety
+61.1%
Fair Value
$28.62
Current Price
$12.56
$16.06 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 25.0%
Earnings expanding 37.1% YoY
Generating 3.6B in free cash flow
Reasonable price relative to book value
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 7.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 9.8x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 10.3%
Earnings declined 78.5%
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 19.7% and operating margin at 25.0%. Revenue growth of 12.0% demonstrates continued momentum.
Bull Case : ERIC
The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.
Bear Case : CSCO
The primary concerns for CSCO are PEG Ratio, Price/Book, P/E Ratio. A P/E of 40.1x leaves little room for execution misses.
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 1.00 — expect wider price swings.
CSCO is growing revenue faster at 12.0% — sustainability is the question.
ERIC generates stronger free cash flow (7.0B), providing more financial flexibility.
Bottom Line
CSCO scores higher overall (71/100 vs 42/100), backed by strong 19.7% margins and 12.0% revenue growth. ERIC offers better value entry with a 61.1% margin of safety. Both earn "Strong Buy" and "Hold" 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
Want to dig deeper into these stocks?