WallStSmart

Cisco Systems Inc (CSCO)vsOmnicom Group Inc (OMC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 242% more annual revenue ($59.05B vs $17.27B). CSCO leads profitability with a 18.8% profit margin vs -0.3%. 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

OMC

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 1/9Altman Z: 0.76
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

Intrinsic value data unavailable for OMC.

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

OMC3 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
27.9%8/10

Revenue surging 27.9% year-over-year

Free Cash FlowQuality
$3.00B8/10

Generating 3.0B 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

OMC4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.5%3/10

ROE of 0.5% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
15.972/10

Expensive relative to growth rate

EPS GrowthGrowth
-10.3%2/10

Earnings declined 10.3%

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 : OMC

The strongest argument for OMC centers on Price/Book, Revenue Growth, Free Cash Flow. Revenue growth of 27.9% demonstrates continued momentum.

Bear Case : CSCO

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

Bear Case : OMC

The primary concerns for OMC are Return on Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

CSCO carries more volatility with a beta of 0.83 — expect wider price swings.

OMC is growing revenue faster at 27.9% — sustainability is the question.

OMC generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

CSCO scores higher overall (70/100 vs 49/100), backed by strong 18.8% margins. Both earn "Strong Buy" and "Hold" 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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Omnicom Group Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Omnicom Group Inc. is an American global media, marketing and corporate communications holding company, headquartered in New York City.

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