Cisco Systems Inc (CSCO)vsWestern Digital Corporation (WDC)
CSCO
Cisco Systems Inc
$92.63
+1.80%
TECHNOLOGY · Cap: $365.88B
WDC
Western Digital Corporation
$442.36
+2.51%
TECHNOLOGY · Cap: $152.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 401% more annual revenue ($59.05B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 18.8%. WDC appears more attractively valued with a PEG of 0.87. WDC earns a higher WallStSmart Score of 79/100 (B+).
CSCO
Strong Buy70
out of 100
Grade: B-
WDC
Strong Buy79
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.4%
Fair Value
$56.34
Current Price
$92.63
$36.29 premium
Intrinsic value data unavailable for WDC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 24 in profit
Strong operational efficiency at 24.9%
Earnings expanding 31.2% YoY
Generating 1.5B in free cash flow
Every $100 of equity generates 86 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 477.2% YoY
Large-cap with strong market position
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
Moderate valuation
Trading at 21.2x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 1.42 suggests the stock is reasonably priced for its growth.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Altman Z-Score.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book.
Key Dynamics to Monitor
CSCO profiles as a mature stock while WDC is a growth play — different risk/reward profiles.
WDC carries more volatility with a beta of 2.16 — expect wider price swings.
WDC is growing revenue faster at 45.5% — sustainability is the question.
CSCO generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
WDC scores higher overall (79/100 vs 70/100), backed by strong 55.3% margins and 45.5% revenue growth. Both earn "Strong Buy" and "Strong 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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