WallStSmart

Cisco Systems Inc (CSCO)vsHoneywell International Inc (HON)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 58% more annual revenue ($59.05B vs $37.44B). CSCO leads profitability with a 18.8% profit margin vs 12.6%. CSCO appears more attractively valued with a PEG of 1.32. CSCO earns a higher WallStSmart Score of 70/100 (B-).

CSCO

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 10.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.17

HON

Buy

50

out of 100

Grade: C-

Growth: 2.7Profit: 7.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSCOUndervalued (+37.1%)

Margin of Safety

+37.1%

Fair Value

$130.10

Current Price

$81.83

$48.27 discount

UndervaluedFair: $130.10Overvalued
HONSignificantly Overvalued (-416.2%)

Margin of Safety

-416.2%

Fair Value

$47.19

Current Price

$225.79

$178.60 premium

UndervaluedFair: $47.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSCO5 strengths · Avg: 8.6/10
Market CapQuality
$319.49B10/10

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

HON3 strengths · Avg: 8.7/10
Market CapQuality
$143.53B9/10

Large-cap with strong market position

Return on EquityProfitability
26.1%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$1.12B8/10

Generating 1.1B in free cash flow

Areas to Watch

CSCO2 concerns · Avg: 3.0/10
P/E RatioValuation
29.1x4/10

Moderate valuation

Altman Z-ScoreHealth
1.172/10

Distress zone — elevated risk

HON4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

P/E RatioValuation
32.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Comparative Analysis Report

WallStSmart Research

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 1.32 suggests the stock is reasonably priced for its growth.

Bull Case : HON

The strongest argument for HON centers on Market Cap, Return on Equity, Free Cash Flow.

Bear Case : CSCO

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

Bear Case : HON

The primary concerns for HON are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

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

HON carries more volatility with a beta of 0.90 — expect wider price swings.

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

CSCO generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

CSCO scores higher overall (70/100 vs 50/100), 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.

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Honeywell International Inc

INDUSTRIALS · CONGLOMERATES · USA

Honeywell International Inc. is an American publicly traded, multinational conglomerate headquartered in Charlotte, North Carolina. It primarily operates in four areas of business: aerospace, building technologies, performance materials and technologies (PMT), and safety and productivity solutions (SPS).

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