WallStSmart

Cisco Systems Inc (CSCO)vsFrequency Electronics Inc (FEIM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 86806% more annual revenue ($63.33B vs $72.87M). CSCO leads profitability with a 20.9% profit margin vs 3.7%. CSCO appears more attractively valued with a PEG of 0.98. CSCO earns a higher WallStSmart Score of 77/100 (B+).

CSCO

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.5Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.30

FEIM

Buy

54

out of 100

Grade: C-

Growth: 9.3Profit: 5.5Value: 4.3Quality: 7.5
Piotroski: 2/9Altman Z: 1.98

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSCO6 strengths · Avg: 9.0/10
Market CapQuality
$423.39B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
52.1%10/10

Earnings expanding 52.1% YoY

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
20.9%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

FEIM4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
69.8%10/10

Revenue surging 69.8% year-over-year

EPS GrowthGrowth
529.0%10/10

Earnings expanding 529.0% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Areas to Watch

CSCO3 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Altman Z-ScoreHealth
1.302/10

Distress zone — elevated risk

FEIM4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Market CapQuality
$768.73M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.2%3/10

ROE of 2.2% — below average capital efficiency

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CSCO

The strongest argument for CSCO centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 20.9% and operating margin at 27.7%. Revenue growth of 17.6% demonstrates continued momentum.

Bull Case : FEIM

The strongest argument for FEIM centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 69.8% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.

Bear Case : CSCO

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

Bear Case : FEIM

The primary concerns for FEIM are Altman Z-Score, Market Cap, Return on Equity. A P/E of 272.8x leaves little room for execution misses. Thin 3.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

CSCO profiles as a growth stock while FEIM is a hypergrowth play — different risk/reward profiles.

CSCO carries more volatility with a beta of 0.98 — expect wider price swings.

FEIM is growing revenue faster at 69.8% — sustainability is the question.

CSCO generates stronger free cash flow (5.0B), providing more financial flexibility.

Bottom Line

CSCO scores higher overall (77/100 vs 54/100), backed by strong 20.9% margins and 17.6% revenue growth. 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.

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Frequency Electronics Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Frequency Electronics, Inc. designs, develops, manufactures and sells precision frequency and time control products and components for microwave integrated circuit applications. The company is headquartered in Mitchel Field, New York.

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