Cisco Systems Inc (CSCO)vsThe Coca-Cola Company (KO)
CSCO
Cisco Systems Inc
$96.57
+4.79%
TECHNOLOGY · Cap: $364.02B
KO
The Coca-Cola Company
$78.42
-0.01%
CONSUMER DEFENSIVE · Cap: $337.40B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 20% more annual revenue ($59.05B vs $49.28B). KO leads profitability with a 27.8% profit margin vs 18.8%. CSCO appears more attractively valued with a PEG of 1.46. CSCO earns a higher WallStSmart Score of 70/100 (B-).
CSCO
Strong Buy70
out of 100
Grade: B-
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-63.6%
Fair Value
$56.34
Current Price
$96.57
$40.23 premium
Margin of Safety
-22.2%
Fair Value
$64.19
Current Price
$78.42
$14.23 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
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
Trading at 10.0x book value
Elevated debt levels
Expensive relative to growth rate
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 1.46 suggests the stock is reasonably priced for its growth.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Altman Z-Score.
Bear Case : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
CSCO carries more volatility with a beta of 0.91 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
KO generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CSCO scores higher overall (70/100 vs 65/100), backed by strong 18.8% margins. 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.
Visit Website →The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Compare with Other COMMUNICATION EQUIPMENT Stocks
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