WallStSmart

Cisco Systems Inc (CSCO)vsHewlett Packard Enterprise Co (HPE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 65% more annual revenue ($59.05B vs $35.74B). CSCO leads profitability with a 18.8% profit margin vs -0.3%. HPE appears more attractively valued with a PEG of 0.85. 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

HPE

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 3.5Value: 6.7Quality: 3.8
Piotroski: 3/9Altman Z: 0.69
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

Intrinsic value data unavailable for HPE.

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

HPE3 strengths · Avg: 8.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.858/10

Growing faster than its price suggests

Revenue GrowthGrowth
18.4%8/10

18.4% revenue growth

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

HPE4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-0.5%2/10

ROE of -0.5% — below average capital efficiency

EPS GrowthGrowth
-30.3%2/10

Earnings declined 30.3%

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

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 : HPE

The strongest argument for HPE centers on Price/Book, PEG Ratio, Revenue Growth. Revenue growth of 18.4% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bear Case : CSCO

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

Bear Case : HPE

The primary concerns for HPE are Piotroski F-Score, Return on Equity, EPS Growth.

Key Dynamics to Monitor

CSCO profiles as a mature stock while HPE is a growth play — different risk/reward profiles.

HPE carries more volatility with a beta of 1.31 — expect wider price swings.

HPE is growing revenue faster at 18.4% — 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 55/100), backed by strong 18.8% margins. Both earn "Strong Buy" and "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.

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Hewlett Packard Enterprise Co

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.

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