WallStSmart

Cisco Systems Inc (CSCO)vsMotorola Solutions Inc (MSI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cisco Systems Inc generates 406% more annual revenue ($59.05B vs $11.68B). CSCO leads profitability with a 18.8% profit margin vs 18.4%. CSCO appears more attractively valued with a PEG of 1.34. 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

MSI

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 4.7Quality: 3.5
Piotroski: 3/9Altman Z: 1.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSCOUndervalued (+39.6%)

Margin of Safety

+39.6%

Fair Value

$130.10

Current Price

$77.60

$52.50 discount

UndervaluedFair: $130.10Overvalued
MSISignificantly Overvalued (-60.5%)

Margin of Safety

-60.5%

Fair Value

$262.35

Current Price

$467.28

$204.93 premium

UndervaluedFair: $262.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSCO5 strengths · Avg: 8.6/10
Market CapQuality
$311.74B10/10

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

MSI4 strengths · Avg: 8.8/10
Return on EquityProfitability
104.2%10/10

Every $100 of equity generates 104 in profit

Market CapQuality
$78.13B9/10

Large-cap with strong market position

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$1.14B8/10

Generating 1.1B in free cash flow

Areas to Watch

CSCO2 concerns · Avg: 3.0/10
P/E RatioValuation
28.4x4/10

Moderate valuation

Altman Z-ScoreHealth
1.172/10

Distress zone — elevated risk

MSI4 concerns · Avg: 2.8/10
P/E RatioValuation
36.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Price/BookValuation
32.1x2/10

Trading at 32.1x book value

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 1.34 suggests the stock is reasonably priced for its growth.

Bull Case : MSI

The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.8%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : CSCO

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

Bear Case : MSI

The primary concerns for MSI are P/E Ratio, Piotroski F-Score, PEG Ratio. Debt-to-equity of 4.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

MSI carries more volatility with a beta of 0.96 — expect wider price swings.

MSI is growing revenue faster at 12.3% — sustainability is the question.

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

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CSCO scores higher overall (70/100 vs 62/100), 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.

Visit Website →

Motorola Solutions Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.

Visit Website →

Want to dig deeper into these stocks?