Cisco Systems (CSCO) Competitors

Cisco Systems (NASDAQ:CSCO) and Broadcom (NASDAQ:AVGO) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, media sentiment, valuation and earnings.

Which has more risk and volatility, CSCO or AVGO?

Cisco Systems has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Broadcom has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Is CSCO or AVGO more profitable?

Broadcom has a net margin of 22.64% compared to Cisco Systems' net margin of 17.60%. Broadcom's return on equity of 35.49% beat Cisco Systems' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cisco Systems	17.60%	26.48%	9.87%
Broadcom	22.64%	35.49%	14.58%

Which has higher earnings and valuation, CSCO or AVGO?

Cisco Systems has higher earnings, but lower revenue than Broadcom. Cisco Systems is trading at a lower price-to-earnings ratio than Broadcom, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cisco Systems	$55.62B	4.80	$10.32B	$2.45	27.50
Broadcom	$57.05B	23.15	$5.90B	$2.67	105.17

Does the media refer more to CSCO or AVGO?

In the previous week, Broadcom had 118 more articles in the media than Cisco Systems. MarketBeat recorded 178 mentions for Broadcom and 60 mentions for Cisco Systems. Broadcom's average media sentiment score of 1.25 beat Cisco Systems' score of 1.17 indicating that Broadcom is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cisco Systems	48 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Broadcom	129 Very Positive mention(s)	14 Positive mention(s)	23 Neutral mention(s)	6 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders hold more shares of CSCO or AVGO?

73.3% of Cisco Systems shares are held by institutional investors. Comparatively, 76.4% of Broadcom shares are held by institutional investors. 0.0% of Cisco Systems shares are held by company insiders. Comparatively, 2.0% of Broadcom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Is CSCO or AVGO a better dividend stock?

Cisco Systems pays an annual dividend of $1.64 per share and has a dividend yield of 2.4%. Broadcom pays an annual dividend of $2.36 per share and has a dividend yield of 0.8%. Cisco Systems pays out 66.9% of its earnings in the form of a dividend. Broadcom pays out 88.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cisco Systems has increased its dividend for 13 consecutive years and Broadcom has increased its dividend for 15 consecutive years. Cisco Systems is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts recommend CSCO or AVGO?

Cisco Systems presently has a consensus target price of $69.95, suggesting a potential upside of 3.83%. Broadcom has a consensus target price of $292.08, suggesting a potential upside of 4.01%. Given Broadcom's stronger consensus rating and higher possible upside, analysts clearly believe Broadcom is more favorable than Cisco Systems.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cisco Systems	0 Sell rating(s)	8 Hold rating(s)	15 Buy rating(s)	2 Strong Buy rating(s)	2.76
Broadcom	0 Sell rating(s)	1 Hold rating(s)	26 Buy rating(s)	2 Strong Buy rating(s)	3.03

Summary

Broadcom beats Cisco Systems on 16 of the 19 factors compared between the two stocks.