Comba Telecom Systems (OTCMKTS:COBJF) & Cisco Systems (NASDAQ:CSCO) Financial Review

Comba Telecom Systems (OTCMKTS:COBJF) and Cisco Systems (NASDAQ:CSCO) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Institutional and Insider Ownership

11.0% of Comba Telecom Systems shares are held by institutional investors. Comparatively, 72.2% of Cisco Systems shares are held by institutional investors. 0.0% of Cisco Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Comba Telecom Systems and Cisco Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comba Telecom Systems	0	0	0	0	N/A
Cisco Systems	1	10	11	0	2.45

Cisco Systems has a consensus target price of $59.23, suggesting a potential upside of 5.38%. Given Cisco Systems’ higher probable upside, analysts clearly believe Cisco Systems is more favorable than Comba Telecom Systems.

Earnings and Valuation

This table compares Comba Telecom Systems and Cisco Systems’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comba Telecom Systems	N/A	N/A	N/A	($0.01)	-17.40
Cisco Systems	$57.00 billion	4.02	$12.61 billion	$3.07	18.31

Cisco Systems has higher revenue and earnings than Comba Telecom Systems. Comba Telecom Systems is trading at a lower price-to-earnings ratio than Cisco Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Comba Telecom Systems and Cisco Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comba Telecom Systems	N/A	N/A	N/A
Cisco Systems	22.13%	33.42%	14.49%

Summary

Cisco Systems beats Comba Telecom Systems on 10 of the 10 factors compared between the two stocks.

About Comba Telecom Systems

Comba Telecom Systems Holdings Limited, an investment holding company, engages in research, development, manufacture, and sale of wireless telecommunications network system equipment and related engineering services. It operates through two segments, Wireless Telecommunications Network System Equipment and Services, and Operator Telecommunication Services. The company provides base station antennas and subsystems; network system products, and open RAN products, as well as in-depth coverage solutions; and technical support, value-added, and repairing services. It also engages in the trading and marketing of wireless telecommunications network system equipment; manufacture and sale of intelligent machinery; research and development, and trading of digital microwave system equipment; and provision of hardware and software solutions and services. The company serves the airport, education, government and public safety, healthcare, hospitality, retail, stadium, and transportation industries. It operates in Mainland China, rest of Asia Pacific, the Americas, the European Union, the Middle East, and internationally. The company was founded in 1995 and is headquartered in Tai Po, Hong Kong.

About Cisco Systems

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points that are standalone, controller appliance-based, switch-converged, and Meraki cloud-managed offerings; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and cloud-native platform. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.