Cisco Systems Inc (CSCO)vsExtreme Networks Inc (EXTR)
CSCO
Cisco Systems Inc
$81.83
+1.20%
TECHNOLOGY · Cap: $319.49B
EXTR
Extreme Networks Inc
$15.46
+2.05%
TECHNOLOGY · Cap: $2.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 4742% more annual revenue ($59.05B vs $1.22B). EXTR leads profitability with a 75.0% profit margin vs 18.8%. EXTR appears more attractively valued with a PEG of 0.58. CSCO earns a higher WallStSmart Score of 70/100 (B-).
CSCO
Strong Buy70
out of 100
Grade: B-
EXTR
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.1%
Fair Value
$130.10
Current Price
$81.83
$48.27 discount
Margin of Safety
-1491.5%
Fair Value
$0.94
Current Price
$15.46
$14.52 premium
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
Keeps 75 of every $100 in revenue as profit
Growing faster than its price suggests
Areas to Watch
Moderate valuation
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 21.5x book value
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 1.32 suggests the stock is reasonably priced for its growth.
Bull Case : EXTR
The strongest argument for EXTR centers on Profit Margin, PEG Ratio. Profitability is solid with margins at 75.0% and operating margin at 6.4%. Revenue growth of 13.8% demonstrates continued momentum.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Altman Z-Score.
Bear Case : EXTR
The primary concerns for EXTR are P/E Ratio, Price/Book. A P/E of 257.7x leaves little room for execution misses.
Key Dynamics to Monitor
EXTR carries more volatility with a beta of 1.71 — expect wider price swings.
EXTR is growing revenue faster at 13.8% — sustainability is the question.
CSCO generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CSCO scores higher overall (70/100 vs 54/100), backed by strong 18.8% margins. 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 →Extreme Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Extreme Networks, Inc. provides software-driven networking solutions for businesses, data centers, and service provider customers globally. The company is headquartered in San Jose, California.
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