WallStSmart

Cisco Systems Inc (CSCO)vsInteractive Brokers Group Inc (IBKR)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 851% more annual revenue ($59.05B vs $6.21B). CSCO leads profitability with a 18.8% profit margin vs 15.9%. 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

IBKR

Strong Buy

66

out of 100

Grade: B-

Growth: 9.3Profit: 7.5Value: 9.3Quality: 5.3
Piotroski: 2/9
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
IBKRUndervalued (+26.5%)

Margin of Safety

+26.5%

Fair Value

$103.90

Current Price

$68.68

$35.22 discount

UndervaluedFair: $103.90Overvalued

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

IBKR6 strengths · Avg: 9.0/10
Operating MarginProfitability
78.8%10/10

Strong operational efficiency at 78.8%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Market CapQuality
$115.34B9/10

Large-cap with strong market position

Return on EquityProfitability
23.5%9/10

Every $100 of equity generates 24 in profit

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

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

IBKR3 concerns · Avg: 3.7/10
PEG RatioValuation
2.324/10

Expensive relative to growth rate

P/E RatioValuation
30.6x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : IBKR

The strongest argument for IBKR centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 15.9% and operating margin at 78.8%. Revenue growth of 15.2% demonstrates continued momentum.

Bear Case : CSCO

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

Bear Case : IBKR

The primary concerns for IBKR are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

CSCO profiles as a mature stock while IBKR is a growth play — different risk/reward profiles.

IBKR carries more volatility with a beta of 1.25 — expect wider price swings.

IBKR is growing revenue faster at 15.2% — sustainability is the question.

IBKR generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

CSCO scores higher overall (70/100 vs 66/100), backed by strong 18.8% margins. IBKR offers better value entry with a 26.5% margin of safety. Both earn "Strong Buy" and "Strong 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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Interactive Brokers Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Interactive Brokers Group, Inc. is a global automated electronic broker. The company is headquartered in Greenwich, Connecticut.

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