Cisco Systems Inc (CSCO)vsTarget Corporation (TGT)
CSCO
Cisco Systems Inc
$96.57
+4.79%
TECHNOLOGY · Cap: $364.02B
TGT
Target Corporation
$125.25
-0.50%
CONSUMER DEFENSIVE · Cap: $56.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 77% more annual revenue ($104.78B vs $59.05B). CSCO leads profitability with a 18.8% profit margin vs 3.5%. 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-
TGT
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-70.9%
Fair Value
$56.51
Current Price
$96.57
$40.06 premium
Margin of Safety
+33.1%
Fair Value
$171.45
Current Price
$125.25
$46.20 discount
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
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
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 : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Altman Z-Score.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
CSCO profiles as a mature stock while TGT is a value play — different risk/reward profiles.
TGT carries more volatility with a beta of 1.01 — expect wider price swings.
CSCO is growing revenue faster at 9.7% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
CSCO scores higher overall (70/100 vs 48/100), backed by strong 18.8% margins. TGT offers better value entry with a 33.1% 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 →Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?