Cisco Systems Inc (CSCO)vsMicrosoft Corporation (MSFT)
CSCO
Cisco Systems Inc
$121.15
-0.31%
TECHNOLOGY · Cap: $473.64B
MSFT
Microsoft Corporation
$367.34
+1.80%
TECHNOLOGY · Cap: $2.97T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 424% more annual revenue ($318.27B vs $60.75B). MSFT leads profitability with a 39.3% profit margin vs 19.7%. MSFT appears more attractively valued with a PEG of 1.23. MSFT earns a higher WallStSmart Score of 72/100 (B).
CSCO
Strong Buy71
out of 100
Grade: B
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CSCO.
Margin of Safety
-77.9%
Fair Value
$213.30
Current Price
$367.34
$154.04 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 25.0%
Earnings expanding 37.1% YoY
Generating 3.6B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 9.8x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
No major concerns identified
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 19.7% and operating margin at 25.0%. Revenue growth of 12.0% demonstrates continued momentum.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : CSCO
The primary concerns for CSCO are PEG Ratio, Price/Book, P/E Ratio. A P/E of 40.1x leaves little room for execution misses.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
CSCO profiles as a mature stock while MSFT is a growth play — different risk/reward profiles.
MSFT carries more volatility with a beta of 1.10 — expect wider price swings.
MSFT is growing revenue faster at 18.3% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Bottom Line
MSFT scores higher overall (72/100 vs 71/100), backed by strong 39.3% margins and 18.3% revenue growth. 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 →Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Visit Website →Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?