WallStSmart

Cisco Systems Inc (CSCO)vsFranklin Wireless Corp (FKWL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 148986% more annual revenue ($59.05B vs $39.61M). CSCO leads profitability with a 18.8% profit margin vs 0.5%. CSCO trades at a lower P/E of 29.1x. CSCO earns a higher WallStSmart Score of 70/100 (B-).

CSCO

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 10.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.17

FKWL

Hold

39

out of 100

Grade: F

Growth: 7.3Profit: 3.5Value: 3.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSCOUndervalued (+37.1%)

Margin of Safety

+37.1%

Fair Value

$130.10

Current Price

$81.83

$48.27 discount

UndervaluedFair: $130.10Overvalued
FKWLSignificantly Overvalued (-338.3%)

Margin of Safety

-338.3%

Fair Value

$0.94

Current Price

$3.70

$2.76 premium

UndervaluedFair: $0.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSCO5 strengths · Avg: 8.6/10
Market CapQuality
$319.49B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
24.9%8/10

Strong operational efficiency at 24.9%

EPS GrowthGrowth
31.2%8/10

Earnings expanding 31.2% YoY

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

FKWL4 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
133.3%10/10

Earnings expanding 133.3% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.0210/10

Safe zone — low bankruptcy risk

Areas to Watch

CSCO2 concerns · Avg: 3.0/10
P/E RatioValuation
29.1x4/10

Moderate valuation

Altman Z-ScoreHealth
1.172/10

Distress zone — elevated risk

FKWL4 concerns · Avg: 3.0/10
Market CapQuality
$41.72M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

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 18.8% and operating margin at 24.9%. PEG of 1.32 suggests the stock is reasonably priced for its growth.

Bull Case : FKWL

The strongest argument for FKWL centers on Price/Book, EPS Growth, Debt/Equity.

Bear Case : CSCO

The primary concerns for CSCO are P/E Ratio, Altman Z-Score.

Bear Case : FKWL

The primary concerns for FKWL are Market Cap, Return on Equity, Profit Margin. A P/E of 177.0x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

CSCO profiles as a mature stock while FKWL is a value play — different risk/reward profiles.

CSCO carries more volatility with a beta of 0.83 — expect wider price swings.

CSCO is growing revenue faster at 9.7% — sustainability is the question.

CSCO generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

CSCO scores higher overall (70/100 vs 39/100), backed by strong 18.8% margins. 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.

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Franklin Wireless Corp

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Franklin Wireless Corp. The company is headquartered in San Diego, California.

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