Cisco Systems Inc (CSCO)vsHewlett Packard Enterprise Co (HPE)
CSCO
Cisco Systems Inc
$112.15
-0.19%
TECHNOLOGY · Cap: $444.99B
HPE
Hewlett Packard Enterprise Co
$54.40
-1.48%
TECHNOLOGY · Cap: $73.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 63% more annual revenue ($63.33B vs $38.79B). CSCO leads profitability with a 20.9% profit margin vs 4.0%. CSCO appears more attractively valued with a PEG of 1.10. CSCO earns a higher WallStSmart Score of 75/100 (B).
CSCO
Strong Buy75
out of 100
Grade: B
HPE
Buy51
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 52.0% YoY
Every $100 of equity generates 26 in profit
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 27.7%
17.6% revenue growth
Revenue surging 40.0% year-over-year
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 8.8x book value
ROE of 6.0% — below average capital efficiency
4.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : HPE
The strongest argument for HPE centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 40.0% demonstrates continued momentum.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Price/Book.
Bear Case : HPE
The primary concerns for HPE are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 50.2x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
CSCO profiles as a growth stock while HPE is a hypergrowth play — different risk/reward profiles.
HPE carries more volatility with a beta of 1.44 — expect wider price swings.
HPE is growing revenue faster at 40.0% — sustainability is the question.
CSCO generates stronger free cash flow (5.0B), providing more financial flexibility.
Bottom Line
CSCO scores higher overall (75/100 vs 51/100), 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.
Visit Website →Hewlett Packard Enterprise Co
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.
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