In today’s fast-paced tech landscape, Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA) stand out as key players in their respective arenas. Cisco specializes in communication equipment and network security, while Comcast operates across diverse segments including cable communications and media. Both companies exhibit significant market overlap and innovative strategies that could impact their growth trajectories. As we delve into this comparison, I aim to help you identify which company presents the more compelling investment opportunity.
Table of contents
Company Overview
Cisco Systems, Inc. Overview
Cisco Systems, Inc. is a leading technology company specializing in Internet Protocol (IP) based networking and communications products. Founded in 1984 and headquartered in San Jose, California, Cisco’s mission is to empower organizations to securely connect and collaborate in an increasingly digital world. Its extensive portfolio includes enterprise routing, campus and data center switching, and advanced security solutions. Cisco serves a diverse clientele, including businesses of all sizes, public institutions, and service providers. The company emphasizes innovation and strategic partnerships to enhance its product offerings, aiming to provide reliable and scalable solutions that facilitate seamless communication and data management.
Comcast Corporation Overview
Comcast Corporation, established in 1963 and based in Philadelphia, Pennsylvania, operates as a media and technology conglomerate. Its mission revolves around delivering diverse entertainment, information, and connectivity services worldwide. Comcast’s operations span multiple segments, including Cable Communications, Media, Studios, Theme Parks, and Sky. The company is well-known for its Xfinity brand, which offers broadband, video, and voice services to residential and business customers. Through its media division, Comcast operates NBCUniversal and the Peacock streaming service, showcasing its commitment to providing comprehensive entertainment options and engaging experiences for its audience.
Key similarities and differences
Both Cisco and Comcast operate within the technology and communications sectors, focusing on connectivity and information services. While Cisco primarily emphasizes networking and security solutions, Comcast diversifies its offerings across media and entertainment, including cable services and theme parks. Their business models reflect distinct approaches to market demands, with Cisco targeting enterprise solutions and Comcast catering to consumer and business services.
Income Statement Comparison
Below is a comparison of the most recent income statements for Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA). This analysis will help investors assess the financial health of these companies.
| Metric | Cisco Systems (CSCO) | Comcast Corporation (CMCSA) |
|---|---|---|
| Market Cap | 304.27B | 97.26B |
| Revenue | 56.65B | 123.73B |
| EBITDA | 15.38B | 37.61B |
| EBIT | 12.52B | 22.81B |
| Net Income | 10.18B | 16.19B |
| EPS | 2.56 | 4.17 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Cisco reported a revenue of 56.65B, a modest increase from 53.80B in the previous year, while Comcast achieved significant growth from 121.57B to 123.73B. Cisco’s net income saw a slight decline from 10.32B to 10.18B, indicating margin pressures, whereas Comcast’s net income rose from 15.39B to 16.19B, reflecting improved operational efficiency. Overall, Cisco’s margins appear to be under pressure, whereas Comcast’s performance showcases robust growth and stability in margins, suggesting a stronger position in its market segment.
Financial Ratios Comparison
The following table presents a comparative analysis of key financial ratios for Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA) based on the most recent data available.
| Metric | CSCO | CMCSA |
|---|---|---|
| ROE | 21.73% | 18.92% |
| ROIC | 11.62% | 8.56% |
| P/E | 26.83 | 9.06 |
| P/B | 5.83 | 1.71 |
| Current Ratio | 0.998 | 0.677 |
| Quick Ratio | 0.908 | 0.677 |
| D/E | 0.633 | 1.158 |
| Debt-to-Assets | 0.242 | 0.372 |
| Interest Coverage | 7.38 | 5.64 |
| Asset Turnover | 0.463 | 0.465 |
| Fixed Asset Turnover | 16.59 | 1.98 |
| Payout Ratio | 63.23% | 29.73% |
| Dividend Yield | 2.36% | 3.28% |
Interpretation of Financial Ratios
Cisco displays a higher return on equity (ROE) and return on invested capital (ROIC) compared to Comcast, indicating stronger profitability and efficiency in generating returns from investments. However, Cisco’s higher P/E ratio suggests that it may be overvalued relative to its earnings. Conversely, Comcast’s lower P/E and P/B ratios imply it is potentially undervalued. Both companies exhibit liquidity concerns with current ratios below 1, but Cisco’s interest coverage ratio is superior, indicating better debt management.
Dividend and Shareholder Returns
Cisco Systems, Inc. (CSCO) maintains a robust dividend strategy with a payout ratio of approximately 63% and a dividend yield of 2.36%. The trend shows a consistent increase in the dividend per share, currently at $1.62, indicating a solid commitment to returning value to shareholders. Additionally, the company engages in share buybacks, which further enhances shareholder returns. Conversely, Comcast Corporation (CMCSA) offers a lower dividend yield of 2.64% with a payout ratio of about 30%. While both companies prioritize returning value, Cisco’s more aggressive dividend policy may better support sustainable long-term value creation for shareholders.
Strategic Positioning
Cisco Systems, Inc. (CSCO) holds a strong position in the communication equipment sector with a market cap of $304B, leveraging its extensive portfolio in networking and security. The company faces competitive pressure from emerging technologies and rivals in the sector, yet it remains a leader in innovation. Comcast Corporation (CMCSA), with a market cap of $97B, operates across multiple media segments and competes aggressively in broadband and streaming services, positioning itself well against technological disruptions in the telecommunications landscape.
Stock Comparison
In this section, I will analyze the stock price movements of Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA) over the past year, highlighting key price dynamics and trading trends.
Trend Analysis
Cisco Systems, Inc. (CSCO) has shown a significant price change of +53.6% over the past year, indicating a bullish trend. The stock has displayed acceleration in its upward movement, with notable highs reaching $78.00 and lows at $45.47. The standard deviation of 8.66 suggests some volatility, but the overall trend remains positive. In the recent period from September 14, 2025, to November 30, 2025, CSCO experienced a price increase of +15.65% with a trend slope of 1.02, further reinforcing its bullish outlook.
Comcast Corporation (CMCSA), on the other hand, has faced challenges, with a price change of -37.99% over the past year, reflecting a bearish trend. This decline has shown deceleration, marked by highs of $46.26 and lows of $26.69. The standard deviation of 4.44 indicates moderate volatility during this decline. In the recent period from September 14, 2025, to November 30, 2025, CMCSA’s price fell by -19.27% with a trend slope of -0.56, confirming the bearish sentiment in the market.
In summary, CSCO presents a strong investment opportunity with a bullish trajectory, while CMCSA shows significant bearish trends that may warrant caution for potential investors.
Analyst Opinions
Recent recommendations for Cisco Systems, Inc. (CSCO) indicate a “B” rating with analysts highlighting solid scores in discounted cash flow and return metrics, though concerns over debt to equity persist. In contrast, Comcast Corporation (CMCSA) has received an “A” rating, with analysts praising its strong overall performance, particularly in return on equity and assets. The consensus for CSCO leans towards a hold, while CMCSA is viewed as a buy for the current year.
Stock Grades
In reviewing the latest stock grades for Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA), we find a consistent outlook from several reputable grading companies.
Cisco Systems, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Melius Research | maintain | Buy | 2025-11-13 |
| Morgan Stanley | maintain | Overweight | 2025-11-13 |
| B of A Securities | maintain | Buy | 2025-11-13 |
| Barclays | maintain | Equal Weight | 2025-11-13 |
| Citigroup | maintain | Buy | 2025-11-13 |
| Piper Sandler | maintain | Neutral | 2025-11-13 |
| JP Morgan | maintain | Overweight | 2025-11-13 |
| Keybanc | maintain | Overweight | 2025-11-13 |
| Rosenblatt | maintain | Buy | 2025-11-13 |
| Wells Fargo | maintain | Overweight | 2025-11-13 |
Comcast Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-11-03 |
| Barclays | maintain | Equal Weight | 2025-11-03 |
| Goldman Sachs | maintain | Neutral | 2025-11-03 |
| Bernstein | maintain | Market Perform | 2025-10-31 |
| Scotiabank | maintain | Sector Perform | 2025-10-31 |
| Evercore ISI Group | maintain | Outperform | 2025-10-31 |
| Benchmark | maintain | Buy | 2025-10-31 |
| TD Cowen | maintain | Buy | 2025-10-31 |
| JP Morgan | maintain | Neutral | 2025-10-31 |
| Seaport Global | downgrade | Neutral | 2025-10-31 |
Overall, both companies maintain a generally positive outlook, with Cisco exhibiting strong support from analysts and Comcast showing a mixed but stable pattern, especially with some maintaining “Buy” ratings despite a recent downgrade from Seaport Global. As always, I recommend considering these grades alongside your own research and risk tolerance.
Target Prices
The current target prices from reliable analysts for Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA) reflect a positive outlook.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Cisco Systems, Inc. | 88 | 69 | 76.75 |
| Comcast Corporation | 41.5 | 28 | 34.59 |
For Cisco, the target consensus of 76.75 is slightly below the current stock price of 77.01, suggesting a stable outlook with limited upside potential. In contrast, Comcast’s target consensus of 34.59 is significantly higher than its current price of 26.69, indicating analysts expect considerable growth potential for the stock.
Strengths and Weaknesses
Below is a comparison table highlighting the strengths and weaknesses of two companies, Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA).
| Criterion | Cisco Systems (CSCO) | Comcast Corporation (CMCSA) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Strong (Net Margin: 18%) | Moderate (Net Margin: 13%) |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | High | Strong |
| Debt level | Moderate (Debt/Equity: 0.63) | High (Debt/Equity: 1.16) |
Key takeaways from this analysis indicate that Cisco demonstrates strong profitability and innovation, bolstered by a solid global presence and market share. Conversely, Comcast, while diversified and maintaining substantial market presence, faces higher debt levels, which may pose risks in economic downturns.
Risk Analysis
Below is a summarized risk analysis for Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA).
| Metric | CSCO | CMCSA |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks with Comcast particularly vulnerable due to its higher leverage and reliance on traditional media. Recent shifts in consumer preferences towards streaming services further complicate CMCSA’s position, while CSCO must navigate evolving regulatory landscapes in tech.
Which one to choose?
When comparing Cisco Systems, Inc. (CSCO) and Comcast Corporation (CMCSA), several key metrics emerge. CSCO has a market cap of 273.1B with a bullish stock trend showing a 53.6% increase over the last year. Its P/E ratio stands at 26.83, with a solid return on equity of 21.73%. In contrast, CMCSA, with a market cap of 146.7B, is experiencing a bearish trend, down 37.99%. It boasts a lower P/E of 9.06, but its overall score is higher at A, emphasizing strong fundamentals.
For growth-focused investors, CSCO appears favorable due to its upward price momentum and robust operating margins. Conversely, conservative investors may find CMCSA’s lower valuation appealing, albeit with higher risk from its declining stock trend.
Both companies face risks: CSCO contends with competition in tech, while CMCSA grapples with market dependence in media.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Cisco Systems, Inc. and Comcast Corporation to enhance your investment decisions:
