WallStSmart

Cisco Systems Inc (CSCO)vsSilicom (SILC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 91057% more annual revenue ($60.75B vs $66.64M). CSCO leads profitability with a 19.7% profit margin vs -16.6%. SILC appears more attractively valued with a PEG of 1.41. CSCO earns a higher WallStSmart Score of 68/100 (B-).

CSCO

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 4.3Quality: 5.0
Piotroski: 6/9Altman Z: 1.17

SILC

Hold

36

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 7.0Quality: 7.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CSCO.

SILCUndervalued (+31.2%)

Margin of Safety

+31.2%

Fair Value

$27.82

Current Price

$42.98

$15.16 discount

UndervaluedFair: $27.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSCO5 strengths · Avg: 8.6/10
Market CapQuality
$498.59B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.5%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
25.0%8/10

Strong operational efficiency at 25.0%

EPS GrowthGrowth
37.1%8/10

Earnings expanding 37.1% YoY

Free Cash FlowQuality
$3.56B8/10

Generating 3.6B in free cash flow

SILC3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
32.8%10/10

Revenue surging 32.8% year-over-year

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

CSCO4 concerns · Avg: 3.0/10
PEG RatioValuation
1.784/10

Expensive relative to growth rate

Price/BookValuation
9.8x4/10

Trading at 9.8x book value

P/E RatioValuation
42.2x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.172/10

Distress zone — elevated risk

SILC4 concerns · Avg: 2.0/10
Market CapQuality
$271.95M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-9.2%2/10

ROE of -9.2% — below average capital efficiency

EPS GrowthGrowth
-79.6%2/10

Earnings declined 79.6%

Profit MarginProfitability
-16.6%1/10

Currently unprofitable

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 19.7% and operating margin at 25.0%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : SILC

The strongest argument for SILC centers on Revenue Growth, Debt/Equity, Price/Book. Revenue growth of 32.8% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bear Case : CSCO

The primary concerns for CSCO are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.

Bear Case : SILC

The primary concerns for SILC are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

CSCO profiles as a mature stock while SILC is a hypergrowth play — different risk/reward profiles.

SILC carries more volatility with a beta of 1.58 — expect wider price swings.

SILC is growing revenue faster at 32.8% — sustainability is the question.

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CSCO scores higher overall (68/100 vs 36/100), backed by strong 19.7% margins and 12.0% revenue growth. SILC offers better value entry with a 31.2% margin of safety. 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.

Visit Website →

Silicom

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Silicom Ltd. designs, manufactures, markets and supports network and data infrastructure solutions for a variety of servers, server-based systems, and communications devices in North America, Europe, and Asia Pacific. The company is headquartered in Kfar Sava, Israel.

Want to dig deeper into these stocks?