Cisco Systems Inc (CSCO)vsUbiquiti Networks Inc (UI)
CSCO
Cisco Systems Inc
$77.60
+1.17%
TECHNOLOGY · Cap: $311.74B
UI
Ubiquiti Networks Inc
$784.88
-0.46%
TECHNOLOGY · Cap: $46.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 1887% more annual revenue ($59.05B vs $2.97B). UI leads profitability with a 29.9% profit margin vs 18.8%. UI appears more attractively valued with a PEG of 0.82. UI earns a higher WallStSmart Score of 73/100 (B).
CSCO
Strong Buy70
out of 100
Grade: B-
UI
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.6%
Fair Value
$130.10
Current Price
$77.60
$52.50 discount
Margin of Safety
-1.8%
Fair Value
$700.60
Current Price
$784.88
$84.28 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
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Keeps 30 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 46.7x book value
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 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Altman Z-Score.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 51.8x leaves little room for execution misses.
Key Dynamics to Monitor
CSCO profiles as a mature stock while UI is a growth play — different risk/reward profiles.
UI carries more volatility with a beta of 1.37 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
CSCO generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
UI scores higher overall (73/100 vs 70/100), backed by strong 29.9% margins and 35.8% revenue growth. CSCO offers better value entry with a 39.6% margin of safety. 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 →Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?